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Inflation is still rising, and despite Americans' dissatisfaction with the high prices, consumers haven't really slowed down their spending habits. So, what are consumers doing to compensate for the price increases?
Economist Vance Ginn told KTRH that consumers are often trying to cut down on their bigger purchases and spending more on necessities. Unfortunately, that doesn't give them the same fulfillment. So, they bite the bullet and find ways to cope with paying higher prices for the items they want.
They're bargain hunting and taking on credit card debt to keep up with the inflated economy. Ginn says, "Credit card debt has racked up to $1 trillion across the economy. Those interest rates are at about 20% right now."
In the long run, these increased interest rates just add more to the prices consumers end up paying for their goods. Ginn says this is unsustainable, and in the next half of 2024, we will likely have to see major changes to consumer spending habits.