During the 1920s, how did credit card debt play a role in causing the great depression? * not enough cash was floating around. * people could not pay off their bills. * interest rates were not high enough. * there was no longer a need for banks.

The correct answer is "People could not pay off their bills."

During the 1920's, many American citizens started to buy items on credit. This allowed them to buy luxury goods by making monthly payments. To most Americans, this was a flawless system, as they did not have to pay the upfront price of the goods.

However most citizens did not realize that over an extended period of time, the cost of the good they bought on credit actually became more expensive thanks to the interest rate. Americans severely over estimated their ability to keep up with this payments, causing them to fall into debt.