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Study shows surge in credit card debt as consumers battle rising costs of living, goods

Higher credit limits help improve credit acores
Posted at 1:04 PM, Jan 12, 2023
and last updated 2023-01-12 14:04:30-05

KANSAS CITY, Mo. — As consumers continue to battle the rising costs of goods caused by inflation, an increasing number of people are turning to credit cards as a solution.

A study by NerdWallet released Jan. 10 reports total credit card debt has increased by over 15% from 2021 to 2022. A total of 1.05 trillion in credit card debt is owed in the United States.

Households that carry credit card debt will pay an average of $1,380 in interest this year, with the assumption interest rates don't increase.

NerdWallet also found prices are rising faster than incomes, meaning that the overall cost of living is outpacing take-home pay.

The use of buy now, pay later services to pay short-term loans or even everyday necessities could result in even higher debt, per NerdWallet.