The Good Life on Plastic Money Pol and Andrea Rossetti grew up during the age of credit cards. It is not surprising then, that they have lots of them. Pol, in particular, likes to show off his wallet full of credit cards. They include Sears, The Bay, Canadian Tire, TD/Canada Trust Visa，Citibank MasterCard, Esso, Petro Canada, American Express, Royal Bank Visa，CIBC Aerogold Visa, and Diners Club. Pol and Andrea saw no reason to worry about using credit cards. They were both university graduates with high-paying jobs and lots of common sense and ability. But they also liked the good life and denied themselves very little. They bought an expensive house with fine furnishings. They ate out two or three times a week. They loved to travel and took at least one overseas vacation a year. When they were in their twenties and living in an apartment, their lifestyle was easy to maintain. They found no difficulty in making payments on time and avoided any interest charges. When they were in their thirties (with two children) and living in their nice home, their use of credit cards changed. They seemed to lose sight of the "account balance" amount and could see only the figure for the "minimum payment required." In most cases, this was the amount that they paid. Now, Pol and Andrea are in their forties. To their surprise, they often have difficulty paying even the minimum. Several times now, they have received letters from creditors requesting them to reduce the balance of their account. Without really understanding it all, Pol and Andrea have realized that they are in a financial hole and need help. For assistance, they turn to the Metropolitan Credit Counselling Service.

Questions:

1. Explain the chain of circumstances that led up to the situation in which Pol and Andrea find themselves.

2. In your opinion, how common is Pol's and Andrea's situation? Explain.

3. When credit limits are established in order to keep spending within reason, how can a situation like Pol's and Andea's develop?

4. What will the advice of the credit counselling service probably be? Explain fully.

5. Will Pol and Andrea be able to continue their lifestyle?

Answer rating: 100% (QA)

1Chain of activities that led Andrea and Pol in their situation are The full dependance of Credit ca... View the full answer