Access to credit can create a psychological illusion of wealth that has nothing to do with actual financial position. A high credit limit can make someone feel financially comfortable even while carrying a balance that is quietly accumulating interest.
This happens because spending power and net worth get mentally blurred together, even though they are completely different things. Available credit is not income, and it is not savings, it is simply borrowed capacity that must eventually be repaid, often with interest.
A useful mental shift is tracking net worth, assets minus debts, rather than just available spending power. This tends to create a far more accurate and sobering picture of actual financial health than a credit limit ever will. This article is educational only.