New report: 37% of Tennessee adults rely on credit cards to meet needs

Inflation is a reality that affects everyone, from individuals to businesses to entire economies. Its effects can be felt in the form of higher prices for goods and services, reduced purchasing power, and an increased cost of living. Consumers, in particular, have been hit hard by inflation and are looking for ways to cope with its effects.

One of the most common strategies adopted by consumers to deal with inflation is to look for ways to cut costs. This can take many forms, from seeking out lower prices and discounts when making a purchase, to eating out less and delaying major purchases. Additionally, many consumers are turning to generic products instead of name-brand ones in order to save money.

Unfortunately, for some individuals, cutting costs is not enough to make ends meet. As a result, many consumers are turning to credit cards, loans, or pawnshops to help pay for their increased costs. According to recent data, 21% of adults are relying on credit to deal with inflation. While this may provide a quick solution in the short term, relying on credit can be a risky financial move.

One of the major risks associated with relying on credit to deal with inflation is the increased interest payments. Those who carry balances on their credit cards or pay off loans slowly will ultimately pay more in interest. This risk is further compounded by the fact that interest rates have risen dramatically in recent years.

This issue is particularly prevalent in Tennessee, where recent analysis found that 37.5% of adults relied on credit cards to meet their spending needs. Additionally, 19.7% of adults in the state have increased their credit card usage due to recent price increases.

Is your household facing a financial crisis due to these changes and are you ready to consider your legal options?  The law office of T. Verner Smith may have answers to your mounting financial problems.

Through financial restructuring, debt resolution, or legal options including but not limited to bankruptcy, there are ways to relieve the pressure and chart a path to a better future. Don't be embarrassed, don't be hesitant, you are not alone, and taking action now is the smart approach. 

​Call us at (731) 423-1888 and schedule a free consultation.