Credit cards are known to be a payment medium issued to customers, to enable the cardholder pay a merchant for good and services based on the cardholders promise to the card issuer to pay them for the amounts so paid plus the other agreed charges (Wikipedia). To put it simply, it is a card (like our debit cards here in Nigeria), used for purchasing stuff on credit with payment being owed to the company of issue. And such payment comes with a ridiculously high interest rate.
With all this fuss about this credit system in various countries around the globe, I can't help but wonder, if it is because as Nigerians, we have not been exposed to much dependency on this kind of credit usage, as the whole idea seems ridiculous to me. Admittedly, this system contributes hugely to the growth of an economy of a country, from the increased spending of individuals (mainly from cardholders).
I was always fascinated with the idea of having a couple of credit cards, having the means to buy what I want, and leaving the bills for "tomorrow me" to worry about. I was only enlightened after reading a couple of books, some by Robert Kiyosaki. The problem is that majority of those who own or is looking to own a credit card, either have little or no financial orientation, or are just not matured enough to handle such responsibility, having no self restraint. A global trend in developed and developing counties which on the onset is very tempting and promising, but also a huge financial burden for individuals. I begin to wonder, how people abroad earn modestly but still struggle financially. But I understand a bit, that this is as a result of a system where people ignorantly sink themselves in credit card bills ranging from different commercial purchase, mortgage bills, car bills, accumulating bills upon bills just to live a life they can't pay for.
In my country, the system of credit cards is almost non-existent (much less than 1% of population as cardholders). When you can't afford it, you just can't. I doubt the system would even hold on a wide scale here in Nigeria, and a lot of other African countries, where data collection and information management into database of potential customer is an issue. As well as, other economic factors that could influence a potential card holder's credit score, like low rate of job employment and uncertainty with respect to steady paying jobs.
With our current banking culture were loan recovery still poses a big issue in lending activities of banks, would it be wise to encourage the adoption of this credit card system on both the part of the issuer and the public, with fact that it could turn you to a debt slaves as in the US, UK, an other part of Europe and Asia?