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Paying Off Credit Cards

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American people in particular are in major credit card debts. People buy stuff today that they can't afford yet, which keeps up the demand for goods and services. Actually, people become unable to pay their credit cards because of overextending themselves or losing a job. And it has a considerable influence on the economy of the United States.

Generally speaking, the economy becomes sailing, when people maxout their card after card. They are not able to buy some new stuff as far as all their money they spend paying down debt. In such a way goods and services are about to bankrupt as well, since where the demand for falls. If there are no consumers, the stock market would crumble, the banks would go out of business, and the price of gas would go up to $20 a gallon.

To prevent “dooms day comes” the government should care for its people. It might not be common for taxes to skyrocket. If taxes remain unpaid, it can push an inflation rate up in the whole country. Lower taxes and sensible spending cuts are all that people want. Government should limit the amount of stuff that people can buy in credit to stimulate them to pay off their previous debts.

The same happens about credit card companies, which are flooding people with offers. The more people are involved into bank system, the harder for them to get out there. The banks get benefit from it. That is why, the government should not allow credit card companies to pull in such a business, because people waste more than earn in that way.

Taking everything into consideration, it becomes obvious that it will be a serious blow to the economy of the United States, if people do not pay their credit cards. Due to that a great deal of companies will go bankrupt, and a lot of people will be dismissed. The standards of living will become worse because of high inflation in the country.

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