A recent survey has shown that many Americans are turning to credit cards to cover their living expenses, with some even maxing out their cards to deal with inflation and rising prices. The increase in credit card debt has surpassed the trillion dollar mark, indicating that a significant number of Americans are struggling to pay for basic needs.
According to the Debt.com survey, approximately 45% of respondents cited inflation and rising prices as the reason for their heavy reliance on credit cards. Additionally, 35% of Americans reported maxing out their credit cards in recent years, with 85% of those individuals attributing their actions to price increases from inflation.
Young Americans, particularly millennials, are carrying the highest credit card debt load compared to other generations. Roughly 31% of millennials reported owing at least $10,000 to $20,000 in credit card debt, with a higher share carrying debt loads of $20,000 to more than $30,000.
While credit cards can offer temporary relief, accumulating debt at a rapid pace is unsustainable and can lead to long-term financial repercussions. Debt.com Chairman Howard Dvorkin emphasized the importance of individuals exercising caution and seeking alternate financial strategies to navigate these challenging economic times.