The credit card was first introduced during the economic boom in the early 1950s. American consumers were in purchasing mode, and the credit card was a brilliant idea to allow people to buy now and pay later. At first glance this idea seemed great, but what looks and sounds great doesn't always mean it will be great overall. Over the years credit bureaus have issued thousands of credit cards with various questionable policies and high interest rates. “Today, each American household has an average of eight credit cards with approximately $15,000 in debt” (Canner 8). Many consumers have become addicted to cyclical and wasteful consumption and live above their income due to owning credit cards. The invention and continued implementation of credit cards in the American economic and social system appears to be the cause of the struggling economy, the weakening of the American dollar, skyrocketing gas and food prices, historic highs in debt American, and social deprivation in some regions. One of the biggest problems with owning a credit card today and the leading cause of American debt is devastating interest costs. Interest on a typical credit card increases monthly. This means that the interest charged is added to your principal balance at the end of that month. So, if there is a 20% interest rate on a $1000 balance, $200 would be added to the account. The following month the same interest would be applied to the new $1,200 balance. This type of interest causes the debt to grow rapidly. This debt is considered a revolving debt, meaning it is a balance maintained or carried forward each month. “There is currently at least $1 trillion in revolving debt open since… middle of paper… economic growth has stopped dramatically. The federal government creates more money to cover interest on debt payments, which only postpones the inevitable default or bankruptcy. People need to realize that when they buy what they can't afford on credit they are contributing to what could be the collapse of the American economy. Works Cited Canner, Glenn B. Elliehausen, Gregory. “Consumer Experiences with Credit Cards.” Federal Reserve Bulletin 99.5 (2013): 1. MasterFILE Premier. Network. 22 March 2014.Giuseppe, Pietro, prod. Zeitgeist: move forward. Zeitgeistmovieofficial, 2010. DVD. March 21, 2014. Klein, Lloyd. It's in the cards: Consumer credit and the American experience. Westport, Connecticut: Praeger, 1999. eBook Collection (EBSCOhost). Network. March 22, 2014.Sneddon, Gregg. "Money, the credit trap". Finweek (2013): 46-47.Business Source completed. Network. March 22. 2014.