Happy new year GotWooters!

The risk about credit cards is that lots of people (at least here after the crysis) used it to live on loaned money. It was pretty common to have 2 or 3 different credit cards with high limits (or even without limits) and families ended with huge debts and the rates of credit cards ranged from 10-25% when on red numbers. And all this happened in just a few months. With such high rates even if people wanted to save and payoff their debts they were unable and had to call bankrupcy or sell their assest like houses, appartments, cars directly to the bank/entity that gave the credit card.

Those same banks had their assest covered by central goverment so it dindt "matter" to rise the defaulting rate of families. They got goods (houses etc) and the hole in countable money was covered by central banks. Now things have stabilized a bit but having a bunch of credit cards and suffering an "unxpected" crash in 2008 crack was a fking nightmare.