Can anybody explain to me why this happens in the richest country in the world? I live in Europe and honestly I never heard of anybody having this level of issues with credit card debt. I feel like people here just save, then spend, not the other way around. But perhaps it’s too simplicistic?
Also keep in mind we use a credit system that’s tied to so many important loan related necessities. If you don’t open credit cards and get into debt and pay it back regularly you won’t be able to finance/get a loan for a car or a house.
Income inequality.
Things are more difficult for lower working class Americans than the equivalent people in some other countries (sometimes, depending on the state/country being compared to, yadda yadda yadda). So while it’s a rich country, there are a lot challenges for those who aren’t rich.
And when you’re seeing your fellow countrymen enjoying all these nice things, you want to have them too. Can’t afford them? Don’t worry! There are lots of ways to lend you money with interest for you to pay back!
Another common thing I’ve seen is people paying cash for the nice thing they can’t really afford and then realizing they can’t afford necessities like groceries and then those end up going on the credit card.
Predatory business practices, lack of willpower, consumer culture, inflation
It’s only richest for some folks. Others don’t have enough income to pay for basic necessities and cover rent, so it goes on the card and becomes a big problem later.
In the uk at least people use credit. But anyone with a job can get 0% interest pretty much indefinitely.
If you don’t they don’t give you credit so kinda hard to rack up loads unless there’s a change in circumstances.
As planned.
