Household debt hits record $18 trillion as families lean on credit cards - fox34.com

Total U.S. Household debt hit a record $18 trillion in the first quarter of this year, according to the New York Federal Reserve, as more families turn to credit cards to cover everyday costs.

Ted Rossman with Money Management International says the pressure is showing up in counseling offices. Enrollment in the organization's debt management plans has reached a 10-year high, and financial counseling sessions are up 143% since early 2021.

Rossman ties the strain directly to prices climbing across nearly every spending category. The U.S. Bureau of Labor Statistics recently reported food prices are up 33% since 2019. That kind of sustained hit to grocery and household budgets pushes people toward credit to bridge the gap month to month.

For folks in Lubbock living on fixed incomes or hourly wages, that math gets tight fast. When groceries, gas, and rent all cost more than they did five years ago, a credit card stops being a convenience and starts being a lifeline. The problem is that lifeline comes with interest.

That 10-year high in debt management enrollment means more people are already past the point of just watching their budget more carefully.