Due to rising inflation rates, more than 33% of adults from Georgia now turn to their credit cards to pay for their basic living expenses.
A graph of total consumer credit card balance in the U.S. (Photo: Metro Atlanta CEO)
Why Did American Adults Turn To Their Credit Cards to Pay for Their Living Expenses?
Ever since the COVID-19 pandemic hit, it disrupted the American spending pattern. Due to social distancing, spending was greatly reduced on transportation, entertainment, and even dining since deliveries were the standard at the time. As things went back to normal, as did consumer spending, leading to higher rates of inflation. Additionally, rising interest rates make borrowing more expensive, which led many Americans to use their credit cards to pay for their basic living expenses rather than using them for benefits and rewards.
With high-interest rates and inflation continuing to rise, American households find themselves in a tight financial dilemma. Many Americans now report that they can now barely afford basic living expenses, according to the Household Pulse Survey from the U.S. Census Bureau.
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How Georgia Adults Cope With Using Credit Cards to Pay For Basic Living Expenses
Aside from getting money from income sources like jobs and businesses, loans and credit cards are the usual payment methods to pay for basic living expenses. According to the Household Survey, 28% of adults who are using their savings, assets, salary, and pension are now being caught up by the 37% of adults who are now using loans and their credit cards to pay for their basic living expenses, which is up by almost 10%.
Researchers from Upgraded Points are now determining which states are now mostly using their credit cards based on how much they spend for their basic living expenses and how would it cover their overall needs. The states were ranked according to how the adults use their credit cards to meet their needs. Adults were surveyed last February of this year. All in all, Georgia ranked 12th in the entire United States.
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