‘Moving in the wrong direction’: More and more US households use credit cards to make ends meet — with 56 million Americans struggling to pay off credit card debt for over a year

What’s more, a whopping 58% — or 56 million — credit card users have been entrenched in debt for at least a year.

Experts point to rising prices, which have exacerbated money struggles for many households, leading more consumers to rely on their credit cards to cover everyday expenses. According to the latest government data, America’s inflation rate ticked up 3.4% over the past year, fuelled by higher housing and energy costs.

"Inflation is making an existing trend worse," Bankrate senior industry analyst Ted Rossman told CBS MoneyWatch.

"We've been seeing this for a while, with more people carrying more debt for longer periods of time. It's moving in the wrong direction."

Why more consumers are being weighed down by debt

With U.S. credit card debt surpassing the $1 trillion mark last year, more consumers are feeling the strain on their wallets.

But while there have been reports of Americans spending big over the summer on things they enjoy, like travel, concerts and dining out, they aren’t necessarily racking up debt due to impulse purchases.

Around 43% of those in debt are actually carrying an outstanding balance due to an unexpected or emergency expense, such as medical bills, car repairs or home repairs, according to Bankrate. This could also back a wider trend around the savings rate receding and more folks living paycheck to paycheck.

Another survey from Forbes Advisor reveals that more than 4 in 10 respondents have nothing left over from their paychecks after covering their expenses — and a stunning 77% report not having enough money in emergency savings to cover one month’s expenses.

Many Americans are being driven into debt by their emergency costs because they don’t have enough money banked in their savings — but here’s what you can do to prevent this from happening.

Budget for your expenses

Your groceries and gas might be taking up too much of your income to consider setting any aside — but it can be helpful to start recording your monthly expenses in an Excel spreadsheet or an app and budget for your needs.

Look for easy ways to cut costs, like getting rid of that gym membership or streaming service subscription you never use, or shopping around for a cheaper insurance rate on your car.

If you’re looking for a more tangible method of managing your money, you could even try the cash stuffing hack and take your paycheck in cash and divide it into different envelopes based on each spending category to prevent you from overspending. You can include designated envelopes for your savings and even discretionary purchases.

Pay off your debt

Paying off your monthly credit card balance is crucial if you want to avoid racking up more interest and debt — but the reality is that millions of Americans are carrying their balances forward.