Being a recovering "compulsive" shopper, I agonize long and hard over all the purchases I make - from dishtowels to candles, ink for the printers, airline and hotel reservations, and of course, the most important of all, chocolate. The choices seem endless, and if I am only going to buy one, it has to fit my budget and please my palette!
These days, my trips to buy groceries take longer and longer, as I read labels for "wheat free", protein content, fat content, organic, sustainably grown, calories, and then, the worst part - the price.
How can so few items in my grocery cart add up to so much at the end? Today the cashier looked at me and smiled as she said "You saved $25.43 today - the total is $91.61. That's not so bad.... anything under a hundred is pretty good!" I replied, "Maybe so, but I just wish my cart was full." (no comment from the cashier)
As I unload the groceries at home, I think to myself - how is a family of four or six or however many, surviving? Are they buying a lot of macaroni and cheese dinners? Which by the way, are not wheat free.
No wonder so many groceries are bought with credit cards these days. How can the average American family, especially here in Southern California, buy enough food for the week on a budgeted amount that was meant to last for the month? In a recent article by Gary Weiss, I read that the average American carries four credit cards in their wallet. And we all use them more than we should. Today, the credit card debt in the U.S. has reached a record high of nearly $1 trillion dollars, according to the latest figures from the Federal Reserve Board. The average American's household debt from credit cards has risen from $2966 in 1990 to $9984 in 2007. Now, I am guessing the "average" American he is referring to does NOT live in San Diego.
To make matters worse, credit card companies try to lure the young and financially unstable consumers into their clutches. If you have had trouble paying your bills in the past, you can expect to receive tons of new offers for transfers and new credit cards. Mr. Weiss writes"During the first quarter of 2008, for example, 30% of credit-card mailings were specifically targeted to customers who already were steeped in debt."
So I was also pleased to read that both Congress and the Senate are working to pass some legislation to establish a Credit Cardholders Bill of Rights, and set some strict guidelines for the credit card companies. And the Federal Reserve Board is proposing tougher rules to protect consumers. These things won't happen soon enough, in my opinion. Yes, we the consumer, are at fault for overspending what we do not have. But it infuriates me that these companies that are worth mega-billions, take advantage of the already downtrodden and financially undereducated consumer.
In the meantime, be sure you know what you are agreeing to when you fill out those credit card applications and transfers. Read the small print. Always pay before the due date. Pay off your balance if at all possible. Read what comes in the mail from your credit card companies. Watch out for hidden fees and penalties.
Don't use your credit card just to buy an item that is "on sale". You will still have to pay for it, and you haven't "saved" a penny. Write down a list of your credit card debts, and pay off the smallest balance first, while making your regular payments to the others. This will give you a sense of accomplishment!
Lastly, save your loose change to buy the chocolate - and try to keep it under $3.
Mary Jo Troyer
