Not sure they’re planning anything. They want chicken sandwich, chicken sandwich is $14, they whip out that visa and charge it because bank account balance is $10.

6-12 months later they’ve maxxed out the credit card, can’t afford chicken sandwiches anymore and can’t afford the payments. Now they’re fucked.

It’s rebalanced in bankruptcy court, collections departments, insurance carried by the banks, debt settlements, you name it. They could’ve eaten beans and rice all year and not been in the spot. Instead they traded future credit worthiness for a chicken sandwich.

It’s literally that simple. Banks insure against this kind of loss and sell off bad loans all the time. Those get utilized for various things to avoid taxes or whatever over time. Interest rates climb. Taxes climb. That’s where it gets balanced back out.

I wouldn’t sweat it too much. Just Americans spending irresponsibly driven by consumerist lifestyles.