This might be a rational approach if your goal is to minimize defaults. CC companies, however, look to maximize their revenue - and that happens when people are

This might be a rational approach if your goal is to minimize defaults. CC companies, however, look to maximize their revenue - and that happens when people are over extended. Their incentive is to overextend you just a little bit, so you are constantly paying them. If you drown, they went too far and killed the golden goose - but constantly in debt is their cash cow. It also, ultimately, pays for people like me who pay on time every month and enjoy the points game.