There is a myth about credit cards, and that is that before credit cards almost everyone saved before buying any item, and the very idea of most people borrowing to fund their living costs was unknown.  This myth is simply not true; credit cards grew up in an environment where credit was becoming more common.

There is some truth in the myth that people tended to borrow less, particularly when spending on consumption.  In a time of stable money and low wage growth there was no logical reason to buy to consume.   Readmore