Book Bites

The History Of Credit Cards – How Convenient!

Chapter 8: It's Time To Take Charge Of The Charge Cards

Red, the straight-A student who loves history, would normally love to engage in a conversation about history. But in the midst of her crisis, preoccupied with trying to deal with her family's financial situation, she didn't have the desire nor see the point in getting a history lesson. And from her sister, no less, who hates history. But that should have been Red's first clue that it would be very pragmatic, highly relevant, and "instantly translatable" to her situation and daily life.

P.S. – Black's history lesson would change how Red looked at credit cards, not only then but to this day. And based on feedback from others (men and women of all ages, and even students), something as unexpected as understanding the original purpose of those little plastic cards (and now mobile wallets, although we both still do it the old-fashioned way) can dramatically change one's perspective on how to use them.



Black's HeadBlack assets.rebelmouse.io


Quick call. I think it be might be helpful for you to understand the history of credit cards.


Red's Head assets.rebelmouse.io


What ever happened to "Hello?" I'm trying to come to grips with our own personal credit card history, and even that's more than I want to know. I don't think knowing the history of credit cards is going to help me deal with our personal dilemma. I'm not sure anything will help.


Black's HeadBlack assets.rebelmouse.io


I know you feel overwhelmed, and I have no desire to continually look backwards, but sometimes understanding history helps you. It did when we looked at the history of your spending habits.


Red's HeadRed assets.rebelmouse.io


It doesn't sound like you're going to drop this, so can you at least make it quick?


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First, there were gas charge cards, which eventually lead to general purpose charge cards, like American Express. Keep in mind these were charge cards, which meant they had to be paid in full every month. They were created as an alternative to having to go to a local Western Union office to wire for money, which is what people did instead of carrying large amounts of cash or trying to cash out-of-state checks. Then in the late 1950's Bank of America issued the first "credit" card – meaning they were extending credit to the cardholder – and initially promoted it to people traveling, in particular salesmen, who could not easily access their home banks.


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That makes sense. I remember Mommy telling me how when she and Daddy traveled out West in the 1950s for three months, they had to use Western Union to cable Grandma and Grandpa for money on a regular basis. Now this is all very interesting and will be useful if I find myself on a game show, but what, pray tell, does this history lesson have to do with my credit card debt?


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Patience, grasshopper! The point is credit cards were started as a business tool to save time and provide convenience. Credit cards were NOT initially designed as consumer debt or financial aid.


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That may not have been the initial plan, but times have changed. Nick and I, and our mountain of credit card debt, are proof of that!


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True. But if you returned to the original purpose of what credit cards were meant to be – a convenience so that you did not have to write lots of checks or have cash available all the time – you might find that you use your credit cards differently. Rather than looking at them as a line of credit or endless funds to buy things, you would start to view them as simply a convenience tool, nothing more.


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You mean actually pay off what you spend each month? All the time? Do people do that? It's an interesting concept, though perhaps not very realistic, and an entirely new way of looking at credit cards.


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Actually, it is a very old way. The original way. And, that is the point I am trying to make. Think about it. Mom and Daddy always paid their credit cards off every month, and even today, Mom only carries about four credit cards, if that many. I think it is important to remember the history – and true purpose – of credit cards.

It was extremely annoying when Black was always right. Especially when I thought I finally had the better of her, and then, she proved me wrong. Understanding that credit cards weren't originally intended to be used as long-term debt makes a huge difference.

Chapter 18: Whine Or Lemonade? Your Choice

This year, when it comes to making New Year’s resolutions, Red has decided to make a conscious effort to do something she’s talked about for years. Something she knows can lead to happiness or, at least, feelings of contentment and satisfaction.


Three months into her "crisis" (Red's word, not Black's), Red looks back and begins to realize the impact of the lessons she was forced to learn were truly invaluable. And that as much as she initially fought having to face reality and actually make changes, vs. just hoping she could "wish" everything to be better, that would've fixed nothing. In fact, it would've only made things worse. Of course, she'll always question how Black could have been so optimistic, going so far as to say Red's crisis was going to be the best thing that ever happened to her.

P.S. – Red still questions Black's optimism, but that's because she's come to realize her natural tendency is to initially focus on the negative. She claims it's because she's "wired" that way, but that's ok because she has learned that just means she has to work harder to overcome the negative and focus on the positive. And challenging times are the perfect time to remind herself that although this mindset and approach may seem hard to do, the results can be so much better than initially hoped for.




Red's HeadRed assets.rebelmouse.io


I'm surprised to find you online again.


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Why? Typical Saturday night. Done with dinner and no one to talk to once I get home. Only tonight home is a hotel and there is no one snoring on the couch.


Red's HeadRed assets.rebelmouse.io


Sorry.


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No reason to be. Everything will work out. One way or another.


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That's what you told me when Nick was fired. In fact, you went so far as to say you thought it was the best thing that ever happened to us. Did you really mean that, or were you trying to make me feel better?
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Chapter 10: So You Think Staying At Home Isn’t A Full-Time Job?

Being a mom, although wonderful, can be challenging … and Red has found that’s especially true during the “dog days” of summer (and is why she created this list of summer ideas), but she’s still amused by Black’s perspective on the “job” of being a mom …

Even before Red’s husband was fired, she had a lot on her plate. But, in reality, probably no more than any other mom, daughter, and wife, who are often (or should that be “usually”) at the center of everything, with their lives being a combination of chauffeur, referee, nurse, cook, friend, and an assortment of other “hats”. And while it can be very rewarding and gratifying knowing that so many people count on you, it can also be overwhelming, not to mention just plain stressful.

P.S. – Even today, Black’s perspective on being a full-time mom (as a stepmom, she considered herself a part-time mom, although she knew that was an important role) still makes Red smile. And while years ago she might have wished she was just a little less needed, now that her girls are older, it makes her a little sad and very nostalgic.



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Another early morning?


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Yes! Now that I did the Sunday night review, I can see how you wake up on Monday mornings ready to tackle the week. Except today is Presidents’ Day and so Natasha’s home from school.


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Anything special planned?


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Why do I have to have something special planned? In fact, why do I have to be the one who does all the planning?


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Sorry I asked …
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Chapter 9: I’m Too Busy To Make A List Of All The Things On My “To Do” List

Whether it’s because it’s the end of the school year, the beginning of the lazy days of summer, or you’re just determined to finally tackle those boxes full of memories, now is the perfect time to start. But first, you might want to read this “secret” to success – whether scrapbooking or any major project …

Red has always had a tendency (Black would say it’s her default setting) of becoming overwhelmed quickly, especially when presented with a project that she isn’t able to do in “one sitting”. And this was even before her crisis, when she had more time. Before she had to juggle being a mom to two young girls along with handling many new responsibilities, when something as simple as scrapbooking became a major task. And although scrapbooking’s as “warm and fuzzy” as it gets, Black gave her some pragmatic advice that not only calmed her down by making the project manageable, but included the girls.

P.S. – Red knows scrapbooking’s never done, but now, years later, the boxes of “new” items to be included are in the attic, and she’s not sure if working on them will give her a feeling of accomplishment or be bittersweet as her “little girls” have now grown into young women. Regardless, Red decided that when she has some pockets of time (whether over holidays or weekends or maybe whenever she needs a “break”), she’ll continue to eat that elephant that Black had given her the “recipe” to many years prior.



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OK. One of the things that has been on my list forever is working on the girls’ scrapbooks.


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Scrapbooking? It is a big business and nothing to laugh at. But since I am not a scrapbooker (not sure that is even a real word), could you give me a little more detail?
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