(QUEEN CITY NEWS) – More Americans are putting their daily purchases on their credit cards, as inflation continues to rise.
The increase in prices is felt in almost all sectors of the economy.
“The rent is ridiculous,” said a man during the lunch break in Uptown.
From groceries to the pump to helping a loved one, Americans are spending more.
“I have two sons that I help. They’re in their 50s and I’m helping them,” said a man as he walked through Uptown,
BE THE FIRST TO KNOW: Sign up here for QC News alerts and get the latest news straight to your inbox
Inflation impacts how people pay for these purchases. Many are turning to their credit cards.
“When the cost of living increases, the people who feel it the most are middle to lower class, because these are things we have to spend our money on. We can’t not buy food, we can’t can’t not use gas to get to and from work,” said Markia Brown, certified financial education instructor.
Between April and June, credit card balances increased by $46 billion. New data from the Federal Reserve shows an increase of nearly 6% from the start of 2022.
“It’s so exciting to qualify for a new card or get that pre-approval in the mail, but what a lot of people weren’t paying attention to was the interest rate on those cards,” said Brown said.
Brown has seen more clients need help managing their debt in recent months.
“Not just with repair, but more so with people who are at a standstill and don’t know what to do,” Brown said.
In an attempt to fight inflation, the Federal Reserve has raised interest rates at least four times this year.
This move, while not having a major impact on prices, is costing those who are already in debt more money to get out.
“It hits the pocket pretty hard. I’m a big guy, I like to eat too. It’s definitely a two-way punch; mentally, so it’s pretty bad here right now,” said Rock Hill resident Jeffrey Pearsall.
The average credit card interest rate is around 18%.
“It’s here, so how do you get out of it?” It is really important to talk about budget. It’s really important to talk about where you can cut corners to save in other areas to increase your spending in non-negotiables. It’s no surprise and it sucks, but instead of going back to what happened before, we now have to get used to the new normal,” Brown said. “A lot of people are going to sink even deeper overall after the holidays and so I expect those numbers to increase dramatically.”