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curtis, when you said "Crdit cards" you really wanted to say CREDIT CARDS right.
Tell us more about you, and why you have never used credit cards.
No one likes to carry cash these days. We love to just FLASH our "extra-superduperplatinum gold bonus-rama " cards. Of course we get "free" trips and mileage. Until we have to pay at the end of the month.
Merchants like it becuase customers buy things they can't afford and the merchant doesn't keep running to the bank to make cash deposits. (or get robbed)
The most obvious answer to why consumers like credit cards is: the protection afforded them by Truth in Lending/Regulation Z laws.
If someone steals your credit card, the max the consumer is generally responsible for is $50 if that. If someone steals your wallet with your entire paycheck in cash in it, you're out every penny.
If you put an advance deposit on something via credit card and the vendor fails to deliver as promised, the consumer can generally contact the card issuer and get his/her money back via chargeback proceedings. If you paid the deposit in cash, the consumer is out of luck (and his/her money).
Credit cards also provide a documentable 'paper trail' of expenses which comes in handy for accounting and tax purposes, particularly if you're a business entity.
I have to take issue with the comment about how "credit cards make you buy things you can't afford".
True, that happens to some people, but that's due to irresponsibility, you can't blame the credit card itself per se. Credit cards are wonderful financial tools if used in a responsible manner; when used irresponsibily they are capable of doing a great deal of harm. The same can be said of any 'wonder drug' such as antibiotics for example: Taken as directly in a responsible manner, they are great. But if you are irresponsible and take the entire bottle all at once, they can kill you. In other words, irresponsible people who get into credit card debt over their heads like to blame the credit card, which is nothing more than a cop-out. The true culprit is the irresponsible card user him/herself.
Good point amspcs !
Human nature is to overeat,overspend, oversleep, and sometimes overdose!