I had gotten my first credit card earlier this year to travel more independently and to establish some credit of my own. As a free lancer, AVANZIA (out of Belgium, I believe) gave me a credit line of € 500 and quite frankly, I was happy with that! Some three months later, with extensive traveling and paying off my bills in full right away, my credit line was raised to € 2000. Fine, too.

Here comes the part about the finance crisis. I know I don’t have to use up my limit while shopping, but some of these American merchants will try anything to make you spend money you don’t have. Of course, having told them I was from Germany, the jeweler on 5th Avenue immediately assumed I had a debit card (where your house bank is liable if you go overboard). This one merchant tried to sell me a 3 Karat diamond ring – he went from the original price of $ 16,400. “down” to $ 2,500. I tried to explain to him that I do not have the credit line – neither did I want the ring – but he assumed I was from Germany, therefore had unlimited credit. He even told me then how the debit credit business works in Germany.
It finally dawned on me and I told him that I had a real credit card – not guaranteed by a bank from Germany- and had a fixed credit line.

For some people this credit business is not real. Money borrowed, paid back at some time whenever, seems not like a real obligation to them. Shifting goods, debts, credit lines – not much personal responsibility involved there.

I also heard some stores have gone back to “Lay-away” instead of pushing credit. You can put things on “lay-away” while making a weekly payment until paid in full to redeem it.