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Sixty-five percent of Americans have increased their credit card usage due to rising costs. (iStock) 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. An additional 55% cite the increased cost of living as the reason behind their reliance on credit cards.Gen Z has increased their credit card usage the most. About 35% of Gen Zers reported using their credit cards more frequently, compared to 23% of millennials, 17% of Gen X and 21% of baby boomers. Financial debts and struggles differ along gender lines, Varo found. More women (36%) reported being stressed about their financial situation compared to men (23%). Most respondents want to address their debt, and plan to use money they get back as tax refunds to better their financial situation. Forty-two percent of survey respondents plan to pay off debts with tax refund money, and 34% plan to save for emergencies. Credible can help you compare debt consolidation options and can help you find personal loan rates that work for you.MANY PERSONAL LOAN BORROWERS RELY ON LOANS FOR EVERYDAY EXPENSES AS COST OF LIVING GROWSGen Zers take on more debt than other generationsThe 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.COVID-19 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.”Gen Z consumers have seen their finances significantly impacted by the pandemic and its aftermath, even more so than the challenges faced by Millennials as a result of the Global Financial Crisis,” said …
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