Americans are using credit cards more than ever, with revolving credit up 9.7% in July. Many are relying on debt to cover everyday costs, as shown by the sudden spike in borrowing after months of moderation.

The surge in consumer debt was largely driven by revolving credit, which rose 9.7%, while non-revolving debt also increased by 1.8%. Overall, consumer debt jumped by $16 billion, a 3.8% annual gain.

Rising costs for groceries, rent, and gas are pushing people to use credit cards more to cover daily expenses. The U.S. Department of Agriculture predicts food prices to increase in 2026, prompting more reliance on credit cards.

With credit card interest rates around 21%, borrowing has become more expensive, leading to higher interest payments for those carrying balances. This, combined with rising living costs, explains the spike in consumer debt.

To avoid falling deeper into debt, consider paying more than the minimum on credit cards, targeting one card at a time for repayment, getting a balance transfer card with a 0% intro APR, and negotiating with your card issuer for hardship programs.

Read more at Yahoo Finance: Consumer Debt Up 9.7% Annually in July