Rising prices are hitting consumers hard, with food prices up 18%, prescription drugs up 7%, and apparel up 5% since January 2022. Total household debt has reached $18.59 trillion, with credit card balances rising to $1.23 trillion.

Lower- and middle-income households are feeling the pinch, relying on credit to cover basics. This can lead to higher balances, growing interest, and missed payments, impacting credit scores. Managing credit becomes crucial as inflation continues to rise.

Credit card utilization and borrowing methods like cash advances and payday loans can negatively impact credit scores. High interest rates, hidden fees, and debt cycles can trap individuals. It’s essential to manage credit wisely to avoid further financial strain and protect credit scores.

Read more at Yahoo Finance: Higher prices could be killing your credit. Here’s what to do about it.