Credit card usage is up as inflation continues to rise

Inflation has steadily been rising in recent years. The Consumer Price Index — a major measure of inflation — rose again in March, by 0.4% on all items. Rising inflation is causing consumers to rely more heavily on credit cards for everyday expenses, a Varo Money survey found. Close to 65% of respondents to the survey blame their added credit card usage on inflated prices on essentials like groceries and utilities.

The younger generation is taking on more debt overall, not just credit card debt. Zoomers use credit more frequently than millennials did in young adulthood, a TransUnion study reported. had a profound effect on Gen Z consumers, with 75% reporting that the pandemic negatively impacted their finances. During the pandemic, many Gen Zers entered their early 20s. A tight job market, rising inflation and the usual struggles of early adulthood have all resulted in financial struggles for Gen Z.

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