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Credit cards have ridiculous interest rates (like 20%+ min.). It's far better to take out a loan and pay your credit dues since the loan will be at a far better rate (at least half).

Why would any sane person do this (pay min. balance)?

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Yes, exactly. That's why I don't get it. I can understand going through a rough patch where you pay the minimum cause you can't afford it, but I cannot understand constantly paying the minimum when you can afford to pay much more

Its possible they are perpetually in a "rough patch" Americans do have a mind set of "temporarily embarrassed millionaire" That would lead to this kind of behavior.

Loans are not given out freely like that, easiest loan you can get is credit card and loans from loan sharks. But a bank loan? You have to explain for what, and have a collateral.

I other words, banks know that people can't pay back credit card debt.

I guess this depends on your credit, but I was able to take out a personal loan from my bank with a few clicks on their website, no big deal at all.

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