The Carrot Mentality

The search for the American dream can be impeded by the “carrot mentality”. What is the carrot mentality? It is the motivation to work for things that we may never attain. We are hungry for all that America has to offer, but unfortunately, we are all not patient and we want what we want right now.

One of the most common “carrots” is instant, free credit. The credit card becomes our plastic carrot. The credit card carrot gets bigger and bigger as interest rates grow. The burden can become so heavy many eventually have to file for bankruptcy. Others overcome the burden of chasing the American dream through credit and have sworn to go back to with cash.

What if businesses do not take cash? All U.S. currency circulating within our country claims, “United States coins and currency are legal tender for all debts, public charges, taxes and dues.”

The Treasury Department, however, claims the statement does not compel anyone to take the currency. Tim Smith, a spokesman for American Airlines, believes, “Any business can do what it wants. If they say you have to pay in carrots, they can do it.” Until there is a public mandate requiring private enterprises to accept currency as payment for goods and services, plastic will most likely become more popular.

Cash is still king and most businesses will still accept it as legal tender. So why should you put the plastic away and use cash?

    1. You will spend less. A variety of scientific studies have found that people are simply willing to spend more when they use credit cards than they do when they use cash.
    2. Cash can make budgeting easier. It can be easy for people to balance their budgets through monthly banking statements..
    3.There most likely will be fewer impulse purchases. Credit cards make it easier to buy things that we don’t need, may not even want, and on the spur of the moment. If you don’t have the money on you, you can’t buy right then.
    4. You can say good-bye to most high interest debt. Credit card companies are notorious for usury practices. Using only cash prevents the temptation of the plastic carrot and high interest.
    5. Cash spending can visually remind us of the relationship between what we earn and what we spend. When we see what we spend daily instead of 30 to 90 days down the road, it is easier for us to visualize the significance of what we earn in relationship to what we spend.

    Whether you go back to cash only or not, don’t allow the carrot mentality to get you into financial trouble. Exercising a little financial discipline like using cash when you can will help you avoid the pitfalls of credit abuse.

    Credit abuse can lead to bankruptcy. If you have found this out the hard way, you will need a bankruptcy lawyer.If you need relief from the stress of debt and you live in or around the metropolitan area of New Orleans, Louisiana, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

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