Can you go one whole day without using your credit card?
In a campaign obviously not endorsed by banks and credit card companies Go credit card free on Fridays, Canadians urged
“Canadians are being urged to give up their credit cards for one day every week, in a campaign to reduce personal debt and lighten fees for small businesses.”
“Credit card debt totalled close to $74 billion Canada-wide in November 2012, more than $2,000 per capita.”
$74 billion in credit card debt divided by 38 billion people = $1,947 in credit card debt per man, woman and child in Canada.
“The Credit Free Friday campaign urges consumers to pay with their debit card or cash, a habit that can force you to consider the financial impact of each purchase.”
“”Just because you have a $5,000 limit on your credit card, doesn’t mean you can afford to rack up that kind of debt,” said Vaz-Oxlade. “When you pay with debit or cash, you know that you can only spend what you have.””
Unless you have an overdraft or line of credit.
“Statistics Canada reported last month that the average Canadian now has approximately $27,000 in consumer debt, not including mortgages.”
That includes debt related to owning a vehicle so not necessarily unsecured.
“”What consumers don’t know is that two to 3.5 per cent of the sale every time the card is used goes to the credit card company or the bank. If we can shift even a little bit of that, once a week, get consumers to use a debit card instead of a credit card for payment, it could really help,” he said. “If consumers pay with money that they have, if they pay with their Interac debit card it’s five cents a transaction rather than say $5 on a $200 purchase,” he added. The fees are higher for the gold and premium cards that are now so popular with consumers, but merchants cannot pass those fees on to consumers in the form of a surcharge, courts have ruled.”
This is an example of how the courts help corporations like credit card companies take advantage of businesses and consumer.
The reality is that if businesses were allowed to charge the consumer to offset these fees, the consumer would most likely make the conscious choice to not use their credit card to save the fee. This will cause a decrease in the use of credit cards and credit card companies and bank profits would suffer.