The first modern credit and charge cards
were introduced in the 1950s, and that allowed consumers a cashless
luxury to buy now and pay later. Since then, credit cards have also been
a source of debate because of rumors and lawsuits centered on unethical
and predatory practices by financial institutions. While the shift from
cash based transactions to non-cash methods of payment has been a
highly visible trend, there are more intricate trends in the global
payments industry that are growing at a high rate.
Credit cards are being increasingly
viewed with skepticism, mainly due to their high annual percentage rates
(APRs) and often vague contract terms, many of which the average
consumer fails to understand. It’s no wonder then that the average
credit card debt for US households stands at $7,100 as of August 2013,
down 1.08% from last year. It is also not surprising that after the 2008
financial crisis, as a result of tightening credit policies, the
average number of credit cards held by Americans declined to 1.96, as of
July 2013. The average number of cards held by Americans stood at 3.7
in 2009. Read more AXP.
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