Core Insights - U.S. credit card debt has reached a record high of $1.13 trillion and is projected to exceed $1.5 trillion in the coming years, indicating that consumers are increasingly relying on credit cards to cover budget deficits exacerbated by inflation [3][5][6]. Demographics of Credit Card Debt - Younger generations are expected to have credit card debt due to lower earnings, but surprisingly, older individuals are accumulating higher debt levels, often entering retirement with significant debt [7][8]. - One in three Americans have maxed out their credit cards, highlighting a growing trend of reliance on credit for survival [6]. Economic Context - Inflation has led to rising costs in essential goods, such as food and gas, while wages have not kept pace, forcing consumers to turn to credit cards [2][3]. - During the pandemic, credit card debt decreased significantly from about $1 trillion to $500 billion due to reduced spending, but it has since rebounded to record levels as spending resumed [4]. Debt Management Strategies - Individuals are encouraged to assess their financial situation by understanding their income and expenses, identifying areas where they can cut costs, and prioritizing paying off high-interest debt first [25][28][29]. - Debt.com offers tools and resources, such as the Instant Debt Advisor, to help individuals manage and reduce their debt effectively [26][30]. Cultural Attitudes Towards Debt - There is a generational shift in attitudes towards debt, with younger individuals more accepting of carrying debt as a norm, contrasting with older generations who view debt negatively [35][36]. - The lack of formal education on debt management in schools contributes to this issue, as many young people do not receive adequate guidance from their parents, who may also be in debt [38].