Amanda H. Christensen, AFC, Extension Professor
Utah State University
In conjunction with launching the new website, www.inflation.usu.edu, local news outlet KSL 5 reached out this week and asked what I thought was the biggest financial mistake many people are making right now to cope with inflation.
My response: Opening credit cards and using them to maintain the same level of pre-inflation spending.
Watch the full segment here.
According to Equifax, the increase in credit card applications are up 30% compared to this time last year. Credit card rates rise when the feds raise interest rates which they have already done multiple times this year to try and curb our inflation-related economic issues. This means you'll be paying much more tomorrow for the debt you incur today.
My advice: Don't finance your life away to maintain your pre-inflation standard of living.
Instead of using credit cards to spend without restraint, focus on a few problem areas (aka groceries, gas, etc.) and make a commitment to trim expenses next month. Download the Cutting Expenses Guidebook to guide your decisions. This free resource has ideas to trim expenses in nine categories and a section on how to boost savings. Your future self (and all the fun things you want to do in the future) will thank you.
Join one of our free webinars to learn more about how to inflation-proof your finances. See the full list of upcoming webinars HERE.
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