BOSTON—The share of U.S. adults who were using credit cards or loans to make ends meet amid rising prices had risen to nearly 40% in October 2023, up from roughly 37% a year prior, according to new research, Payments Dive reported.
The study from the Federal Reserve Bank of Boston also found 34% of adults who lived in a household experiencing a job loss used a credit card or a loan to handle price increases, according to the report.
Gen Z and Millennials were the age groups most likely to use loans and credit cards to respond to higher prices, Payments Dive stated in its analysis.
Besides relying more on credit cards, the Boston Fed said consumers were taking other measures to cut costs.
How Consumers are Cutting Back
“Per its report, consumers have reduced their spending by eating less restaurant food, canceling subscriptions, purchasing less fresh produce and meat and switching to generic products,” the report sated. “Survey respondents also reported contributing less to their savings, working more, moving to less expensive housing and delaying significant purchases.”