In January 2025, the Wall St. Journal reported that the cost of groceries in the U.S. increased 1.8% from a year earlier in December, rising at the fastest pace in more than a year. Also, grocery prices in December 2025 were roughly 28% higher than they were five years ago, according to the Labor Department.
Additionally, the New York Federal Reserve’s September 2024 Survey of Consumer Expectations showed that the average perceived probability of missing a minimum debt payment in a three-month period increased for the fourth consecutive month to 14.2%. Outside of the pandemic, that’s the highest delinquency expectation reading seen in the monthly survey since January 2017.
Note: Many consumers are using more of their available credit and now, nearly 2 in 5 credit cardholders, roughly 37%, have maxed out or come close to maxing out a credit card since the Federal Reserve began raising rates in March 2022, according to a new report by Bankrate. At the same time, the average credit card charges more than 20% interest — near an all-time high — and half of cardholders carry debt from month to month, according to another report by Bankrate.
With inflation hurting the purchasing power of consumers, it’s no wonder that credit usage is up. Phillip Pool can help consumers facing a tough situation during tough times. If you have fallen behind on credit card payments and are being contacted by a debt collector or are being sued to recover an unpaid balance, please fill out a consultation form for a free consultation.