I agree with you, and I think it's because we spend our money on technology. When you buy the latest gadget immediately, it just becomes obsolete. When you save up to buy the latest gadget, a better one comes out before you're done saving. So you get a better a gadget and have more money for more gadgets.

I guess a lot of people want to have the "latest and greatest" for fashion reasons, and credit cards are appealing for that reason. I did that in college and it took me like a year of having a real job to pay it off. Sadly, other people never do pay it off.

This isn't obvious, but it's true.

I pay off my cards every month (my wife is a fantastic money manager), so I don't pay credit card interest. But that's only the surface.

Retailers have to pay to the CC companies a fee (it varies by card type, your processor, and what level of detail you provide to the company), something on the order of 2.5%. Even if you pay 0% interest on your card, you're still paying higher prices at retail in order to cover those card fees.

I have a card that gives me 1% back. I wonder if that's enough to overcome the higher prices due to the card fee. I guess that depends on how many people are paying cash or PO, and my guess is that for most retailers that's a minority, so I'm probably paying more even in this case.