Credit Card Inequality: The Rich Get Richer, the Poor Pay More
2025-03-20
The US credit card market is deeply divided: wealthy 'transactors' enjoy lavish rewards, while poorer 'revolvers' are trapped in a cycle of high-interest debt. Soaring living costs push more people into credit card reliance, resulting in record-high debt of $1.2 trillion. The rich not only benefit from their spending but indirectly subsidize reward programs, costs ultimately passed on to all consumers through high swipe fees. This structural inequality, the article argues, requires legislative intervention, such as caps on interest rates and swipe fees, to alleviate the financial strain on the poor. Recent economic slowdown and rising delinquency rates suggest the system is unsustainable.