I actually work for a credit card company in their credit card underwriting department. I can tell you for a fact that we are very conservative in how much credit we give a customer. Also if we mess up and give too much credit with have an entire department to fix our mistakes and take the credit back. There are only a couple of credit card companies out there today who are going over board on their lines, and we are not one of them. Hence we are still in business,and have many much liquid assets.
The majority of people will pay and pay and pay forever on a credit card, so yes there are making a profit. I guess you could think of the higher risk cards as short term profits- they are getting more money up front.
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You certainly are wise.
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I think someone who makes 20k should have a MAX ever of 10k, 30k a max of 15k, 50k a max of 25k, 100k a max of 50k... and so forth.
No I don't include purchasing your home or a car in that particular equation.
What this would do though is prevent anyone from putting themselves into so much of a bind that they can never imaging paying off the entire debt.
Something has to be done to fix the country, and better rules seem to be needed.
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