Credit Cards have been a major cause of downfall for many an American. Life here revolves around credit or lack thereof. People will guard their credit reports more than anything else in the world. Because with the arcane laws here, even a momentary lapse, can destroy years of good record, which can result in massive financial damage.
India has only recently jumped into the credit card bandwagon. CC offers have proliferated the market in the past few years and along with credit comes its woes. More importantly with no independant tracking mechanism, like a credit rating bureau, the banks dont know the credit-worthiness of a person, and thus keep on advancing credit to questionable customers, who then keep on defaulting payments, and the vicious cycle continues.