Credit card debt compounds DAILY to maximize income from banks at the expense of people who see few options and/or don’t really understand or are avoiding thinking about how evil that is.

That means that both your debt and the rate you pay increase every day, so if you’re owing $1000 in interest one month, and you pay the minimum required payment, you’ll be owing even more than $1000 more the next month.

If your debt on a 20% APR credit card were about $60,000, interest would be increasing it at about $33 per day, so you’d be gaining about $1000 debt per month from interest.

While technically possible, in most cases a state or nation will not go bankrupt or broke due to debts. Nations and pacts like the European Union have their own rules about the financial balance and what level of debts are acceptable.

At the moment, the EU tolerates raised debts in order to cope with the economical stress caused by the pandemic. This allows governments to invest more and cover endangered companies and sectors.

Notorious is the debt of the U.S. Its certainly not without consequences but probably not so catastrophic as sometimes assumed. There are more parameters to measure the financial stability, and thus economic and social stability.

Note too that if someone DID have $60,000 debt on their credit card(s), it’s likely their rate might get raised from 20% to as much as they could get away with (36%).