I’ve been reading through this forum, and I’m shocked at how much debt people can get into with credit cards. In my country, credit cards are common, but you have to pass a credit check, and they don’t just let you keep spending and getting new cards forever. The longest payment plan I’ve seen is six months. I mostly use mine for online purchases and travel, and I pay upfront.
So, I don’t understand how people end up paying thousands of dollars in credit card debt to different companies. Why do people spend money they don’t have, as if they don’t need to pay it back? I don’t think I’ve ever met anyone who had this issue, and it’s unusual to have multiple credit cards here, let alone max them out. How can someone keep getting more cards in that situation?
Debt is a thing everywhere, and I’ve been in it too. I had to work my way out. But credit card debt just doesn’t make sense to me. I feel bad for those of you dealing with this.
Edit: To clarify, I’m not saying debt is only a problem here. I’ve had debt, and I’ve paid it back. People close to me have even faced bankruptcy. Bad things happen. I’m asking why people would use credit cards for anything other than the basics. I can’t imagine getting a new card after maxing one out—how does that happen?
Also, I don’t get why some of you seem so sensitive about this question, like I’m attacking you personally. I’m not. Sorry if I’ve upset anyone. I’m not rich either.
Why do you think most people use credit cards without the plan to pay it back? Some people use credit cards to build their credit, which helps them borrow more money in the future at a lower interest rate. But yeah, some people get carried away because of financial struggles or not really understanding how credit works.
@Phoenix
Building credit makes sense, I get that. But what I don’t get is why companies keep offering bottomless limits. And I don’t understand why some people take this question personally, like I’m accusing them of something.
@Phoenix
I’ve been reading this forum, and I see huge amounts of money being lent by credit card companies compared to people’s incomes. It just doesn’t add up for me. If you’re having financial struggles, no bank around here would approve you for another card. It’s weird that this happens, like the system is trapping people.
@Leith
Credit card companies do close accounts when you miss payments or have financial issues. But I think a bigger question is why minimum payments are so low, allowing people to rack up debt without much accountability. I prefer charge cards—they don’t have a limit, but you have to pay back everything in full every month.
@Phoenix
I get it now. If I have a $10k limit, I can’t pay it off in 6 months. It’s kind of crazy to offer payment plans with interest that could last forever, letting people fall deeper into debt. This really clicked for me, thanks!
@Leith
I think the same way. I don’t get the downvotes on your comment. I read so many posts where people earn a lot of money but have small debts compared to their income. I don’t understand why they do that…
What’s judgmental about asking a question? I don’t understand why people rely on credit cards. Everyone I know who’s had financial problems doesn’t use them, even when they’re in serious trouble. Why is it so common in the States?
@Zane
I’m guessing you are affected by this problem. In that case, it makes sense to try and understand how it works. That’s logical, not being all offended about it.
For us, it’s about helping our teen build their credit. We only charge what we can pay off when the bill is due. But I can tell you from experience, I’ve seen how people rack up thousands.
Some people use credit to fill the gap when their income isn’t enough. Some get an adrenaline rush from spending, even if they don’t have the money. For some, it’s learned behavior—if their parents used credit, they do too.
People charge things they can’t afford, thinking they’ll pay it off when the bill comes. They might pay the minimum or just a bit more, but it keeps piling up. Before they know it, they owe thousands.
Holidays are another trap. Many people charge presents on credit, thinking they’ll pay it off later, but they can’t. Emergencies, like car repairs or medical bills, can also cause people to use credit.