Credit card balances rise 13% as inflation surpasses wage growth.

Wages are rising, but not quickly enough to keep up with the rising cost of living.

Although hourly earnings are up 5.1 percent year on year, prices are rising much faster.

The Consumer Price Index, increased at a faster-than-expected 9.1% in June, marking the fastest rate in more than four 4 decades.

To bridge the gap, more consumers are relying on credit cards, which has contributed to total credit card debt reaching $890B

Overall, credit card balances increased by 13% in the second quarter of 2022, the highest year-over-year increase in more than 20 years.

In the third quarter, 233 million new credit accounts were opened, the most since 2008.

In the face of recessionary fears and rising interest rates, approx 56% of consumers, said their standard of living is already deteriorating.