Recent rate hikes by the Fed have made things even worse. Marginal borrowers are starting to juggle payments. Folks who are behind on bills are struggling more than ever. Not only has the cost of credit gone up, but credit card companies are bolstering profits through heavy penalty fees and aggressive collection practices. They spend freely with the cards, as well, but they always have enough money to pay them off.
Some consumers are occasional revolvers.
They typically pay their credit card bills each month but aren't afraid to carry a balance from time to time so they can buy a big item that they really want. Once the item is paid off, they go back to being a convenience user. But other convenience users slide down into the revolving debt category because of an accident, illness or loss of a job. It can take months, even years, for people to climb out of debt and get their financial lives back in order. Unexpected setbacks swoop into everyone's life at one time or another.