Some Americans rely on credit cards to make ends meet.
- Consumer loans are rising as inflation soars near 40-year highs and Americans are resuming pre-pandemic activities such as traveling and eating out.
- An increasing proportion of these households with cash are behind on payments for car loans, credit cards and personal loans.
- Households’ total debt is still historically low.
Linda Hampton already struggled to pay her credit card bills last year due to thousands of dollars in expenses from her notary business.
Then inflation began to skyrocket in mid-2021, especially gas, energy and grocery prices.
“I’ve just started using my credit card for everything,” says Hampton, even for a combined electricity, natural gas and water bill that has more than doubled since 2020, reaching $ 864 last month.