CHARLOTTE, N.C. — As inflation continues to take a toll on Americans, new reports show an alarming trend: More and more people are using credit cards to cover essential purchases.
Yahoo! Finance found an alarming stat during its research. Nearly half of Americans need credit cards to pay for basic living expenses. It's especially common among younger generations, researchers found.
Another report found that inflation is causing nearly one-third of Americans to max out credit cards.
As for how the Carolinas stack up compared to the rest of the country, Go Banking Rates found the average North Carolinian has $6,955 in credit card debt. It's slightly worse in South Carolina, with the average person having $7,063 in credit card debt. Finance experts say smartphones are enabling consumers to spend more.
"The big thing we're going to be doing in our day and age is what we're doing with the phones," finance coach Heidi MacVittie said. "It's going to be the credit card on Amazon, it's going to be Apple Pay."
MacVittie says your first goal should be establishing an emergency fund. Once you have 2-4 weeks of income stashed away, then it's time to start knocking out your debt.
"That's the best approach to making sure you don't just get sucked into that debt cycle," she said.
Contact Kia Murray at kmurray@wcnc.com and follow her on Facebook, X and Instagram.
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