[jacobr]

Could someone explain to a non-US resident why basically everything seems to be running on credit in the US?

You basically have money on a bank account (hopefully), but still lend with interest to consume?

The only credit card I own is from my employer for expenses, everything else is on debit. I only spend money I have. Quite a few people in Sweden, where I live, have some credit on their debit cards, but I think most people only use the credit for emergencies.

[the_gws]

Half cheek in tongue answer: The difference is that in the US people believe that they will be making more and more every year while in Sweden you don't. So they think they will own tomorrow the money to pay back what they spend today.

Are they right? Well, from 1970 to 2010 US economy has grown at an average of 2,9% per year, while Sweden by 2,1% (1). This is a huge difference, almost 50% more. So yes, they are both right :)

(1) Figures are GDP growth at market prices, source: OECD

[sbalea]

In the US it makes sense to use a credit card for everything you can. Federal laws grant you a lot of protections from fraud and bad transactions when using a credit card. Plus many cards come with side benefits such as cash back, airline miles, extended warranties, travel accident insurance, etc etc. The trick is to pay off your balance every month in order to not start accruing interest. Unfortunately, many people don't do that and end up in financial distress