Consumer credit usage rises for essential spending in US and Colombia

In the United States, more than 50% of consumers are using credit cards to cover essential living expenses, according to a survey by Achieve. Approximately 53% of respondents carry credit card balances due to these costs, with one in four maintaining debt for six months or longer. Experts warn that high interest rates can lead to a difficult debt spiral if balances are not paid in full.

In Colombia, household spending grew by 9.39% in August, reaching $103.99 trillion. This growth was driven largely by credit expansion, particularly in credit cards, which saw an annual growth of 22.3%. Raddar president Camilo Herrera noted that while real income and purchasing power have seen increases, much of the spending is concentrated on essential goods like food. This suggests a recovery driven by necessity rather than general expansion, raising concerns about inflation and debt levels.