I take it that you’ve never been paid late while living paycheck to paycheck? No, it’s not just about forgetting to pay the bill on time, and in many cases the

I take it that you’ve never been paid late while living paycheck to paycheck? No, it’s not just about forgetting to pay the bill on time, and in many cases the interest rate is already the highest one that’s legally possible. When high-status people conspicuously consume through Birkin bags and exclusive club memberships, a lot of other people are led to desire those things. In the case of credit cards, not only is demand drummed up by enlisting wealthy people as card-carrying brand ambassadors who flash their membership card every time they approach a cashier, it also distorts the perception of incurring debt for everyday purchases into something that financially savvy people are doing. Your analysis is kind of correct if you entirely ignore marketing and psychology.