Consumers stuck in credit quicksand

Credit cards used to be a convenience. Now they have become a necessity. According to an online poll conducted last month by the National Foundation for Credit Counseling, 22% of more than 1,900 respondents said they wouldn't be able to make ends meet without access to credit. Another 24% said they would have to make significant lifestyle changes if required to live only on cash. The foundation also conducted a survey in March regarding financial planning, credit usage and debt management. Of 1,007 adults polled via telephone, 33% said they don't pay all their bills on time and 39% said they carry over debt from month to month.  Gail Cunningham, vice president of membership and public relations at the NFCC, said it has become common for Americans to spend more than they make and rely on credit to keep up with the bills. “Children grow up seeing their parents use credit,” she said. “As the story goes, children will beg for something in the checkout line at the store. When mom says she can't afford it, the child says, "Just charge it,'” Ms. Cunningham said. “If the parents handle money irresponsibly, it is likely that the child will, too,” she said. Other results of the NFCC Financial Literacy Survey showed that in recent years, access to credit has diminished. More adults have been rejected for a new credit card this year (7%) than last year (4%).  But according to Ms. Cunningham, getting credit isn't the problem. “It's the irresponsible use of credit that gets people into trouble,” she said. “Although people can usually live on a cash basis for their daily expenses, when it comes time to buy a house or a car, most will need a thick and positive credit file.”