HILLSBOROUGH COUNTY, Fla. — Americans added $46 billion to credit card balances in the second quarter of 2022. That’s according to the Federal Reserve Bank of New York’s Center for Microeconomic Data’s Quarterly Report on Household Debt and Credit.

“The second quarter of 2022 showed robust increases in mortgage, auto loan, and credit card balances, driven in part by rising prices,” Joelle Scally, Administrator of the Center for Microeconomic Data at the New York Fed, is quoted as saying in a news release.

Tomas Vargas, a Tampa Bay-based certified consumer credit counselor with Money Management International (MMI), said he’s seeing inflation play a role in financial issues for some of his clients.

“Inflation causes people to, unfortunately, rely on credit to get that extension of whatever income they have available to put that gasoline in their vehicles, or if it means they have to put those groceries on credit cards to be able to pay those utility bills as they’re going up,” Vargas said.

According to the New York Fed, data also shows credit card balances are up 13% from the second quarter of last year - the biggest jump in over 20 years.

Vargas said the first step he tells clients to take is to evaluate and set their budgets. If turning to credit is necessary, he suggests using cards that have lower interest rates.

“Remember that also, your credit is impacted when you put in more credit, using more of those credit cards, your credit utilization increases and therefore, your credit could be impacted as well,” Vargas said.

Vargas said signs that it’s time for someone to take action to get their finances in order include late fees on bills, overdraft fees on bank accounts and alerts that they’re nearing their credit limit.

“Talk to someone. Talk to an expert. Talk to someone that can help you and tell you what are the options out there for you,” Vargas said.

That’s what Brian Hodge did. The Lake Mary resident said he found himself with around $30,000 in credit card debt a few years ago.

“The old adage is true, that though cash may burn a hole in your pocket, you can at least see it,” said Hodge. “You can’t see a card swipe, and so you’re like, ‘Yeah - I’m good for that. Yeah - I’m good for that. Yeah - I’m good for that.’ And then you check later, and it’s like, ‘Oh, man - I swiped it that many times?’”

Hodge said he sought help from a counselor with MMI and finished paying his debt off three years ago. 

“Stay hopeful, and if there are no brighter sides to it and bankruptcy is the route to go, that’s not the end. It’s a rough road, but it’s not the end,” Hodge said of others who may be facing similar situations.

The report also showed mortgage balances were up by $207 billion, auto loan balances rose by $33 billion and other balances, like retail cards and other consumer loans, increased by $25 billion.