Cracked heels is a frustrating condition that manifests as thick callus around the heels, when combined with dryness can crack and fissure, often splitting into the skin causing bleeding, and pain. It exists because there is callus formation on the heels, but fissures do not necessarily occur just because of callus. If however the skin is dry or has a fungal infection, the skin loses its suppleness and may then fissure.