It’s easy to see how credit cards might allow low-income families to spend more than they earn, allowing them to live a more comfortable upper-income life. But there are a few problems with that story. First, families can’t outrun their actual earnings, and too often credit cards provide the illusion of a better life followed by the crushing reality of debt and costly penalties. More subtly, credit cards create a transfer of money from the poor to the rich by punishing non-credit-card consumers.
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