Just wanted to get some thoughts/ info on how credit limits work.
I have a family member who has a gambling addiction and we recently found out they have been withdrawing from a credit card which now has a balance of $30k. Thing is their annual income is only about $30,000. I then looked at past statements and the limit started at around $5000 in 2013 and its slowly grew to $30,000 today.
How do credit card limits work? They've been paying the minimum balance but I don't understand how they they could offering credit limits to be increased when they're only on about $30k pa on wages?