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How can people have such high credit card debts?
I would say you are typical.  The way people are able to build their available credit, then subsequently build their average balances is buy building their credit score.  According to FICO your credit score is made up as follows: Given that you had no history, and only new credit you are pretty much lacking in all areas.  What the typical person does, is get a card, pay on it for 6 months and assuming good history will either get an automatic bump; or, they can request a credit limit increase. Credit score has nothing to do with wealth or income.  So even if you had 100K in the bank you would likely still be facing the same issue.  The bank that holds the money might make an exception. It is very easy to see how a college student can build to 2000 or more.  They start out with a $200 balance to a department store and in about 6 months they get a real CC with a 500 balance and one to a second department store.  Given at least a decent payment history, that limit could easily increase above 2500 and there could be more then one card open.   Along the lines of what littleadv says, the companies even welcome some late payments.  The fees are more lucrative and they can bump the interest rate.  All is good as long as the payments are made. Getting students and children involved with credit cards is a goal of the industry.  They can obtain an emotional attachment that goes beyond good business reasoning.