(MENAFN) Americans are converting to credit cards progressively to deal with peak inflation, as shown by a US consumer credit reporting agency.
Overall credit card balances amounted to USD930 billion in the October-December period of last year, suring from USD785 billion in the same quarter of the year before, TransUnion stated that in its Q4 2022 Quarterly Credit Industry Insights Report issued on Wednesday.
“Whether it’s shopping for a new car or buying eggs in the grocery store, consumers continue to be impacted in ways big and small by both high inflation and the interest rate hikes implemented by the Federal Reserve, which we anticipate may continue for at least a few more months,” as stated by Michele Raneri, the vice leader of US research and consulting at TransUnion, as recited by the agency.
She went further on to say that “If more moderated rate hikes continue, it would be a good sign that the increases have been working, and that some relief from high inflation may be on the horizon. Until then, we fully expect consumers to continue to look to credit products such as credit cards, HELOCs and unsecured personal loans to help make ends meet and put themselves in stronger financial standing moving forward.”
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