Are we heading toward a cash economy?
By
Tami Osborne, WINK News
Story Created:
Sep 29, 2008 at 9:16 PM EST
Story Updated:
Sep 29, 2008 at 11:18 PM EST
NAPLES, Fla. - Imagine life without credit cards and loans.
Some worry if the nation's credit crisis isn't fixed soon, we could be headed down that road.
Others remember when that was normal..
Today, we talked with people who remember life when cash was all their families used.
While some say it has its pluses, others say it would only hurt now.
"If you didn't have cash, you didn't buy something that you couldn't afford," Virginia Nee says of her childhood.
"In those days, there was no such thing as a credit card," Linda Erbstein adds. "Everything was cash. It was only what you could afford."
But, in the days of credit, spending money on high ticket items, even if you could not really afford it didn't matter to many.
"People are living beyond their means," Erbstein says.
Now, with the current credit crisis, loans to buy homes or cars aren't as easily available, and may only become harder to get.
Some even think we may be heading backwards to a cash-only economy, and that is frightening to some who lived it first hand.
"People start losing their jobs and there's no credit afforded by banks, we're gonna be in a serious, serious situation," Nee says.
"You can't have a cash society. It's not going to work today. People have to have credit," Erbstein adds.
Some say the problem is they just have to learn how to handle it.
"I think the issue isn't credit cards versus cash, but how you plan to manage your life and manage your budget. Whether you choose to live within your means or not."
Wednesday, Oct 1 at 7:55 PM Anonymous wrote ...
Nick learn how to do something and you will get a job. Thousands of people get hired and fired everyday. Most people had jobs even during the depression. Credit Cards are the best line of credit that I ever have ever had . I could borrow tens of thousands no questions ask. I had surgery and put it on my credit card almost 20 grand .
Wednesday, Oct 1 at 10:06 AM Sunflower wrote ...
Many people lived off the credit cards and really you should only use them for the real important things you need.But many use it for things they could pay with cash.Anyways you should be careful to not get in a hole you can't get out.Things are getting worse not better.I don't really want to watch the news anymore it's not too much good things going on.What is America without loans,credit cards,etc.We all are spoil and living the life that we can't afford.
Tuesday, Sep 30 at 12:23 PM American wrote ...
I am from the cash only era. We did not own our home, did not own a car and only spend on the necessary. No cash, we did not buy it. We lived happy within our means. We were able to sleep because we had no one on our backs asking us to pay all those credit cards and/or loans. We did not even have a telphone, we used a pay phone down the street. Large family and we lived on one income. Today, all the kids are professionals.
Tuesday, Sep 30 at 9:01 AM Shawn wrote ...
I like the idea of a cash only economy. Sure it will take a while to stabilize and it will be hard until it does, but a lot of people would realize how much less stressful it will be not to have debt over their heads. Jobs will come back around. They won't pay much but prices are going to drop.
Tuesday, Sep 30 at 7:36 AM trendseeker wrote ...
Less people would need health insurance if they just lived a healthy lifestyle. Not say exercise freak....Eat healthy and zero medical bills will be realized. And, cash only and credit to buy affordable home is what this country could use. Way too many people live beyond their means. We own a home, have 3 teenagers, 1 job in family....and we live a great life, and have for many years. It is not as hard as one thinks.
Tuesday, Sep 30 at 5:50 AM Nick D wrote ...
Jobs? What jobs? Cash or credit it will be a long haul before the economy gets back, there are really no good paying jobs period.... Dont forget health insurance , now theres a time bomb......who can afford that...
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