The problem arises on a personal level when people get used to using their plastic to indulge their whims, and then run up balances they can't comfortably manage. And it arises for whole economies when too many people do that.
Here's an idea…On Mar. 5, Capital One unveiled the findings of a poll it commissioned into taxpayers' plans for their federal tax refunds, which this year look set to average $2,805. Thirty-five percent say they're going to spend all or part of their refund. Of those:
- 23 percent intend to take a vacation
- 16 percent clothing and accessories
- 15 percent electronics