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Inflation is currently running at 7.1%; this, combined with rising food prices and other rising costs, is causing consumers to rely on their credit cards. This can be seen in the release of the Federal Reserve Bank's quarterly report on household debt and credit from December. There was an increase of $351 billion in total household debt in the third quarter of 2022, to a total of $16.51 trillion.

A Kohls Storefront earlier this year. On Thursday, the retailer said it expects lower sales & profits for 2022.Shutterstock. On Thursday, retailer Kohls presented a downbeat forecast for 2022, saying that it expects sales to be down 5-6% year over year. The company cited inflation and specifically noted it was preventing its middle-class customers from spending at its stores.

Added debt from gas price hikes puts pressure on family budgets. A recent survey from nonprofit consumer group DebtHammer suggests that persistent high gas prices are taking a toll on America's family budgets.