Americans are increasingly falling behind on their credit-card payments as soaring interest rates and prolonged inflation continue to squeeze household finances, according to a report published by The Wall Street Journal.
Total U.S. credit-card debt has climbed to approximately $1.25 trillion, while delinquency rates have reached their highest levels since the global financial crisis of 2008, raising concerns among economists and consumer advocates about growing financial instability among middle-class households.
The report highlighted the case of Catherine Clarke, an operations director at a New England hospital, who accumulated nearly $15,000 in credit-card debt despite earning an annual salary of $194,000. With interest rates reaching as high as 26%, Clarke said her monthly payments were barely reducing the balance.
Financial analysts say many Americans are increasingly relying on credit cards to cover essential expenses such as groceries, rent, medical costs, and utility bills as inflation continues to outpace wage growth in several sectors.
Experts described the trend as a “pattern of survival debt,” where consumers use revolving credit not for luxury spending but to maintain everyday living standards amid economic pressure.
The sharp rise in borrowing costs follows aggressive interest-rate hikes introduced by the U.S. Federal Reserve over the past several years to combat inflation. While inflation has eased from earlier peaks, many households continue to face elevated prices on food, housing, insurance, and healthcare.
Consumer advocates warn that high-interest debt could leave millions of Americans financially vulnerable if the labor market weakens or economic growth slows further in the coming months.
Economists are now closely monitoring delinquency trends as a key indicator of consumer financial health and broader economic resilience in the United States.
