Boosting Ghana's Economy -Taking Advantage Of Credit Cards

A major component in the GDP of developed countries is debt. Elsewhere in the world, especially in developed countries, people have access to Credit cards to perform transactions. They use credit cards to raise capital and also to buy goods and services. All the monies in countries like the United States of America are not real monies; much is a debt. If such counties are using and allowing debts to build and sustain their economy, why not Africa? Why not Ghana?

Credit cards are credit systems where registered individuals are advanced a specified amount of money for their personal use.

Whereas debit cards like Master and Visa cards are used to withdraw or expense from one's savings, Credit Cards are used to expense from a debt or loan amount. In simple terms, debit card payments are charged on a person's account, but credit card transactions are charged on a credit company's account.

The use of credit cards is a conglomerate of economic benefits we need to explore.

Credit cards have served as a source of capital for millions of people elsewhere where they are used. Have you heard of the billionaire Robbert Kiyosaki (author of Rich Dad, Poor Dad)? This guy boasts everyday, everywhere, of making millions with zero capital. How? He started business borrowing from the bank and topping up that capital with a credit card. If he is a billionaire today, the credit for his wealth goes to credit Cards. Several other billionaires of our day have taken advantage of the credit cards to raise capital to start their businesses.

I, once upon a time, helped two students to enter the University on grants we obtained from South Tongu District Assembly. The grant was what they used to pay the admission fees. Till date, they have paid the rest of the fees and survived on student loans. Credit Cards work like students loans to give people access to capital and funds to engage in economic activities. Whereas people elsewhere are taking advantage of this system, why should we continue to deny ourselves this privilege?

People have used credit cards to engage in production. They used credit to produce and engage in production activities. When credit cards helped to raised capital, the next thing to think of is production. Credit cards are unexplored avenues to raise capital to increase our production capacity. As a country, it's time to explore this system to boost our production.

Credit cards give people purchasing people. Even though much funds would be spent to produce, people also depend on credit cards to purchase goods and services. This is an added advantage. People elsewhere in the world are given purchasing power through credit cards. This eventually translates into increased demand and eventually, production.

With the use of credit cards as source of capital and funds, and it giving people the purchasing power to buy goods and services - these production and purhases tend to expand and boost the economy. Credit cards represent an added economic advantage we need to explore.

Boosting productivity with credit cards is a worthwhile economic policy. Except for few countries like Russia and India whose currencies are backed by gold, the currencies of most countries are Fiat money, backed by nothing. Whereas the creation of money through debt or credit cards comes with a challenge of being Fiat money, the offsetting advantage of productivity, the unit of measuring the wealth of nations, is a reason worth it. The best time is now before the golbal economy switches to cryptocurrency.

Credit cards are possible in Ghana and any country which has a national database and system of identification. With majority of the population registered on Ghana/Ecowas Identity Card, the introduction of Credit cards is a certain possibility.

Looking into the future ahead, investors, the state and relevant authorities urgently need to start planning towards this so that, as a nation, we can take advantage of it to boost our economic activities.

Rich Akpalu

(Accountant, Author, Public Speaker).