A common practice in the UK is to use credit cards to pay off credit card debt. The idea is to use the interest-free grace-period of new debts to pay off older debts before interest becomes due on them. The British are, according the Guardian, the most credit-intensive country in the world, with 8 million more credit cards issued than there are people living there. Checks on your creditworthiness before cards are issued are minimal, and the issuers use high-pressure marketing to persuade customers to sign up without reading the small print.
Richard Cullen’s wife needed an operation and he started using credit cards in 1998 to finance the £4 000 they needed to have it performed privately. By 2005 the debt had become £130 000 and Richard Cullan committed suicide because he couldn’t see a way out of the problems created by rolling over the debit between the 22 credit cards he had taken out.
The Guardian explains how the credit card industry works and the marketing tools it uses, and how the Royal Bank of Scotland came to offer a gold credit card to a dog in 2003.