Why some people think that credit cards are the killing knife of consumerism, there are three specific reasons: the illusion of credit cards, the high interest rates of credit cards, and other reasons for credit cards.

1. The Illusion of Credit Cards

Some people think that credit cards are the knives used by consumerism to kill people, which is why people have "credit card hallucinations." The so-called credit card illusion means that in many people's perception, they think that the credit card limit is their money (assets), but in fact, the credit card limit is their liability, and once it is used, it will immediately form a liability. In real life, most people are stupid and don't know the difference. They don't know this truth, or they know it and pretend not to know it.

In this way, most people feel comfortable swiping their cards and think it doesn’t matter if they spend their own money. Slowly, you pay more and more, from being able to afford it easily at the beginning, to barely being able to afford it, to finally being unable to afford it, leading to a vicious cycle. This is a typical "ratchet effect." The most terrifying thing is: after the consumption habit is formed, it is easy to upgrade consumption, but difficult to downgrade consumption, that is, it is difficult to change from luxury to frugality. This is the reason why many people use their credit cards to spend even though they know they can't afford it.

From the news released by some media, we know that many young people are now in debt because of credit cards. Some have separated their wives and children, and some have their families broken up. From this perspective, some people will inevitably think that credit cards are the knife used by consumerism to kill people.

2. High interest rates on credit cards

The current standard daily interest rate for credit cards is 0.05%, which means that the interest rate for 10,000 yuan per day is 5 yuan. In the perception of most people, 5 yuan is really not much. This is another illusion. This is the shrewdness of banks. They split a very high interest rate into a very low interest rate from a numerical perspective, making everyone think it is a very low interest rate. If you easily calculate it before consumption, you will find that this is a very high interest rate. The daily interest rate of 5/10,000 is converted into an annual interest rate of 18.25. We use the current bank's 5-year benchmark loan annual interest rate to compare, 49:18.25. The interest rate of the credit card is 3.72 times higher. This high yield will eat up a large part of our wealth. This is one of the reasons why some people think that credit cards are the killing knife of consumerism.

3. Other charges of credit cards

Other charges of credit cards are also one of the reasons why some people think that credit cards are the killing knife of consumerism. For example, annual fees for credit cards range from dozens to hundreds or even thousands of dollars, which will also eat up our wealth. For example, in late payment fees, there were previous news reports that a credit card worth RMB 30,000 was overdue for more than three years, and the bank required repayment of more than RMB 140,000. This is not as simple as devouring wealth.