Friday, March 28, 2008

Dependence on credit cards

It might be style statement for many rich to flaunt the number and types of credit cards in their purse or wallet. But this credit card system is reminiscent of imperial era when the British used to make people of the colonies pay high tax. In this way they took away the wealth of the colonies to their own country and made the colonies poor and financially dependent on them.

Same is happening today. But this is indirect dependence. The people of the developing countries are being given credit card when even their basic requirements are not being fulfilled. These credit card companies decide the rate of interest and other terms. You might have heard credit card companies sending goons as recovery agents to the defaulters' homes because of which many were forced to commit suicide.

These companies charge sky high rate of interest which are quite unheard of in the developed countries like the US and UK. They charge around 150% to 200% !!!! In the developing world it is Credit Card as Country's Financial Dependence on the west. But, how can these countries free themselves. It is by stringent credit card policy and development of credit card issuers in the country itself.