Credit Card Debt Reaches Critical Levels as Americans Struggle with Inflation

A recent survey by Debt.com has exposed the deepening credit card debt crisis facing Americans, with mounting evidence that inflation continues to push households to financial breaking points. The national poll of 1,000 adults reveals stark statistics about credit card usage and economic stress across generations.

Thirty-seven percent of respondents now use credit cards regularly just to make ends meet, while 32% have maxed out their credit card limits. Perhaps most alarming, 44% report carrying larger monthly balances due to ongoing inflationary pressures. Generational data shows Millennials (42%) and Gen Xers (39%) are particularly vulnerable, with over 63% of all respondents carrying a credit card balance.

The survey coincides with a bipartisan legislative effort by Senators Alexandria Ocasio-Cortez and Anna Paulina Luna to cap credit card interest rates at 10%. This proposed legislation aims to address the financial burden faced by consumers, with 23% of maxed-out cardholders owing more than $20,000 in credit card debt.

Howard Dvorkin, CPA and Chairman of Debt.com, emphasized the critical nature of these findings, noting that 27% of respondents are unaware of their credit card's annual percentage rate (APR). This lack of financial awareness, combined with record-high balances, represents a significant economic risk.

The survey results are further contextualized by the University of Michigan's Consumer Sentiment Index, which indicates a decline in consumer confidence. Despite the challenging economic landscape, 57% of respondents have never explored debt relief options such as credit counseling or debt consolidation.

These findings underscore the urgent need for financial education and consumer protection as Americans continue to navigate an increasingly complex economic environment. The persistent impact of inflation and high borrowing costs suggests that credit card debt will remain a critical economic issue in the near future.