Consumers Lean on a ‘Hamster Wheel’ of Credit to Manage Rising Costs
The New York Times • • business
Key Points:
- Alex Watts and his wife earn over $140,000 annually and maintain good credit, but rising costs have pushed their monthly expenses into the red.
- To manage growing credit card debt, they have cut back on driving and stopped saving money, with Watts working significant overtime to keep up.
- Many households like the Wattses are increasingly relying on credit cards to cover essentials due to rising prices in housing, healthcare, utilities, and food.
- Credit card debt hit a record $1.3 trillion at the end of last year, with credit card applications reaching their highest level since late 2022.
