In mid-2023, an article in the Wall Street Journal reported that the number of people who had failed to make a payment on their credit card for at least 90 days had increased by 50 percent from the previous year. People aged 18 to 29 were the most likely to be behind on their payments. The interest rates banks and other credit card issuers charge on unpaid balances is much higher than the interest rates banks charge on car loans or mortgage loans. Why do banks charge such high interest rates on credit cards? Why are people willing to use credit cards if the interest rates on unpaid balances are so high?