The Debt Dilemma

The ubiquity of credit cards in modern economic life inspires much dismay,1 but little nuanced discourse. Lamentations, about undisciplined consumers or manipulative card issuers, lead to policy prescriptions aimed at reducing credit card use.2 Such efforts generally have failed to garner the support of consumers, who demonstrate continued preference for cards over cash or checks.3 These efforts have also roused the ire of opponents to market regulation4 and the credit industry lobby.5 The current dynamic of increasing credit card use juxtaposed with regulatory pressure on card markets reflects our society's deep ambivalence about credit cards.6 Charging Ahead: The Growth and Regulation of Payment Card Markets offers a refreshingly balanced perspective on the optimal use of credit cards.