Tuesday, December 14, 2010

The Effects of Credit Cards on the Brain

Neuroscientists have discovered that the brain regards cash transactions and credit transactions very differently. A cash transaction causes the area in the brain called the insula to light up and cause people to proceed with caution. This doesn't happen with credit cards. In fact, credit cards pump good feelings of an instant reward throughout the brain--very dangerous stuff. 

This is indeed scary stuff and explains a lot about the way we have no problems in using credit cards even though the limit is blown and there's no hope of paying off the debt in the foreseeable future!

The idea is to start using cash -- a cashless society?  Yeah right!

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