Why are people obsessed with credit?

The way i see it is if you can't afford it in the 1st place you don't get it.
And people wonder why they are in debt.
I don't get it.
Please explain.
Additional Details
Lol bigboy same here.

poor people want to be seen to be rich - its the only way they can get nice stuff

i'm lucky enough to be rich enough to have never been in debt!

Debt is a fact of life these days, everyone from the mother of six struggling to pay the rent and put food on the table all the way up to the professional using credit to buy the latest Gucci suit uses credit in some way.
The idea of a credit card, is in theory an excellent one. When used sensibly, either as emergency funds or simply as an advance on money to come they are a useful addition to anyones wallet.
The problem lies in when a situation changes and people choose to ignore it and simply carry on spending as if everythings ok.
I know from personal experience, how easy that is - I lived off credit for almost the entirety of my second year of University, slowly accumulating more and more credit and getting further and further into debt.
I also know how stressful it can be, worrying when the phone is going to ring or waiting for the knock on the door for the debt collectors to come.
Comments such as "if you can't afford it in the 1st place, don't get it" are not only not helpful to someone who has found theirself in this situation, it is also ignorant. Imagine being too scared to answer the phone or door - it's not too pleasant.
Like myself, most people don't get in trouble by using credit to fund a life of pleasure, buying top clothes and pub lunches everyday, it's a gradual decline into a situation that's very difficult to get out of.
For what it's worth, having just gotten out of a debt situation (which, by the way, was nothing like the magnitude some people unfortunately find thereselves in), I'd like to share some pointers which I've learned from personal experience after wading through all the other "advice" that's out there;

1. Admit you're in a situation that's only going to get worse if you leave it.
2. As soon as you realise you owe more than you can afford to pay back, get down the Citizens Advice Bureau with all your recent statements and letters from creditors. They are very helpful and will always do their best to make sure you come up with a plan of re-payment you can afford.
3. If, like me, you receive letters demanding the whole amount of what you owe in one lump sum, don't worry. They can't actually legally do this if you make an sensible offer of repayment. Some people owe ВЈ25k +, who's got that sort of money lying around?
4. If your debt is simply on credit cards, this is classed as "non-priority" debts - simply you really have to try hard to get into trouble for not paying these. I went two years without paying a penny into my student overdraft account (which was 2k overdrawn), and nothing was done except for the occasional letter. Pay the "priority" debts first (such as rent, council tax, bills).
5. Don't be scared of asking for help. The reason I got into trouble is I tried to deal with everything myself. As soon as your creditors find out you've gone to the Citizens Advice Bureau, they'll relax as they know you're clearly making steps to repaying the debt.

That's about all I can think of now, if anyone is worried about their debts and feel I might be able to point them in the right direction in some way, please drop me a mail (craig_hll@yahoo.co.uk) and I'll get an answer to you as soon as possible.

Cheers.

people dont have other ways to make money...so they r in debt

Well they want everything too quick and with loans and other credit facilities available nowday its read tempting and they get stuck in a money pit but you should know how to rebuild credit read some tips and articles on it on this site

its not that people are obsessed with it, its just that as consumers there are so many things available to us now that we can't afford them from our meagre salaries!! Plasma TV's, digital this and that, mobile this that and the other. Sat nav, games consoles by the dozen, our children clamouring for the latest technology, boys toys such as cinema surround systems and the latest digital cameras. The greatest influence on our spending has to be the rise of 'designer' labels and products that we are told we can't do without. Ever. We have to have them now. Today. At any cost. This cost is funded by our reliance on credit and so the system is self-perpetuating and is actually ruining our lives, hopes and aspirations. Personal bankruptcy has reached an all time high. If we are not careful, the whole country will become bankrupt and the banks and financial institutions will only have themselves to blame............................

People have a different attitude to debt than their parents. It is no longer a shameful thing, its almost seen and the norm. We live in a "I must have it now" culture which gives birth to credit. If the I cannot wait syndrome, didn't happen there would be no need for credit. Unfortunately, if you don't have a credit card, you almost don't exist in today's society- mad - yes but true.

The term credit is a general term that means the ability to purchase something without the cash coming from your pocket. This means that we can make a purchase today using someone elseвЂ™s money, and pay them back over a period of time. Credit is therefore a вЂњpromiseвЂќ for repayment of a debt between you and the lender (bank, credit card, store credit card, etc).

Credit also allows you to make purchases that would otherwise take 20 years to save up for... things like a home or a car... The problem is when people spend on credit with the anticipation of earning more money in the future... (I'll get a raise next year and pay this off... or... I have my income tax return coming, and that will take care of all this). We are a consumer driven society filled with toys and a need for instant gratification... credit card companies are just waiting to get their hooks into you... Borrow enough and you are a lifetime client/meal for them to feed off of)

you don't have a mortgage? car loan? needed furniture for your house? medical bills because of illness? debt makes the economy chug along. credit is also convienent. do you buy a 2k tv by bringing in a wad of $100 dollar bills? do you pay for an airline ticket by going to the airline with your coin jar?

its not that people are obsessed with credit. people misuse it. however its a necessity for functioning in our society.

Ditto Fenris's answer!

You don't have a mortgage? You paid cash for your car?

You have a job that pays far more then what you need?

That puts you in that .5% of the population. The rest of us need credit. Even for simple things like making a hotel reservation (gotta have a credit card), or for paying for things mail order.

Take off your blinders and see how the rest of the world lives dude!

because that gives them the chance to delay the amount they need to pay... as long as they want....

They seem to afford everything when the credit card is there because they know how they can possibly pay such amounts... But sometimes they end up in debts and everything because of unavoidable circumstances.. Creditors never expect this too.. They thought they could pay...

"Credit" is a lovely, positive, forward-moving word that makes people feel good. "Wow, I can get credit!" But it manipulates people into borrowing. Whenever you see that word "credit", cross it out and write in the word "debt" because that;s what it is. Then the advertisements don't look so hot: "instant debt with our superplan", "2 years' interest-free debt", "get a debt card today", and so on. Somehow, people forget that "credit" (that is "debt") is simply borrowing next month's or even next years' income. And it's from future income that it needs to be repaid. And when the income won't cover the debt is when the lenders start taking people's homes off them, selling them at auctions and sending them the bills for the rest of the debt. Then the suicides start. So our being hung up on debt (sorry, "credit") is a major problem that needs legislation to protect people from their own emotional desires to have everything now.

No impulse control. Plastic doesn't seem like money to people.

Because of the amount of advertising involved. People are influenced and led to believe that they need all sorts of rubbish & getting the credit they need to afford it isn't really dangerous.

This is a good question. With the economy and gas prices like they are, it seems people would become serious about getting out of/alleviating their credit debt. I used to like to run up my charge cards traveling, buying things for my home, etc., but I now only pay cash when I make a purchase, except for my house, because interest charges are just too much. I can used that money for something else.

They don't realise that credit = debt.

Sadly credit has become our life, credit determines what type of person u r, where u can live, work or travel. if there were no credit then a lot of people wouldnt be where they r. unfortunately some people live off of credit and do not save. but u have to do what u have to do to survive!

but we can afford it with credit lol

We live in a materialistic society and everyone wants to have something better than the next person.

Plus, banks make it so easy to get credit these days, that it's difficult not to be tempted.

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