Credit card usage is a feature of a civilized society with market relationships. Banks offer a really convenient alternative, letting people not to save money and not to borrow from their friends. Building a good becomes a goal of life.



According to USA Federal Reserve data more than 40% of American families spend more money than they make. In average each American spends $1.2 for every $1 he makes. Non-circulating debt (for example, a car loan) accounts for 63% of these borrowings. Speaking of circulating (constantly paid off by credit cards) debt, its growth is really swift. Five years ago this index was 1/3 smaller; 10 years ago it was twice as smaller.

Today an average American owns 2,7 bank credit cards, 3,8 retail credit cards and 1,1 debit cards ? in all 7,6 plastics per person. About 18% of all the purchases, that Americans make, are paid with credit cards. Purchases with other plastics account for 24%.

Purchases are made so easily that it becomes a Trojan Horse. Monthly payments often turn to be more than Americans can afford. Any average American family has about $8000 debt.

The lion share of this huge sum stands for the mortgage debt. The low rates (often less than 6% a year) with 30 years installment cause mortgage debt growth. According to American Housing Survey in 2001 the average American family mortgage debt accounted for $69 227. Only 2% of houses were completely paid off. But this doesn't stop Americans from selling their houses, paid off on less than 90% of mortgage.

In USA first credit cards issued by Diners Club appeared in 1950s. They attracted a lot of rich Americans, because it gave an outstanding opportunity to pay with a card and not to care of the amount of money you have with you. Later Visa and MasterCard took hold.

Initially plastics were used manually; i. e. salesman was writing out a check and applying a card to it, leaving the pressed card number on it. Now credit cards are supplied with magnetic strips to work with a scanner.

Until recently credit card was a luxury. People owning plastics were the objects of envy. But today credit cards are so widely spread that some people start to forget how cash looks like.

Nowadays a lot of innovations in the sphere of credit are being developed. In the nearest future people are not even going to need cards to purchase goods. The new payment system was introduced in Texas. Customers of local supermarkets don't need to carry wallets anymore. The new cash registers Security Touch were installed there. They register finger prints of customers, identify them and determine their creditworthiness. This unique system is called biometrical system of making payments. 10 ? 15 customers turn to the new payment system every week. For registration you only need to show your driver license, credit card and leave your finger prints.

Maybe it's a future of our society that money in hand will not exist and all our life will be determined by a credit score.