Consumer spending drives the U.S. economy, accounting for two-thirds—about 70%—of economic activity and GDP. Household spending rose 6.1% in the 12 months through August 2026, up from 4.3% at the end of 2025, as demand increased for food, travel, and household goods.
Between May and June, American consumers’ use of revolving credit grew 6%, encompassed mostly of what we spend on credit cards.
Research indicates that more consumers are using credit cards for essentials such as groceries, gasoline, and utilities. With essential costs rising faster than wages, many rely on credit to cover the shortfall.
While each consumer’s financial situation is different, there are ways to determine if you are carrying too much credit card debt.
Consider your answers to the following questions:
- Is credit card debt affecting your financial and emotional well-being? High credit card balances can lower your credit score and create financial and emotional stress. As a general guideline, your monthly payments should not exceed 10 percent of your monthly income.
- Are you making only the minimum payment? Credit cards often require low minimum payments, but being able to pay the minimum does not necessarily mean the debt is affordable. If you can pay only the minimum, you may be carrying too much credit card debt.
- Is your credit card debt impacting your credit score? Credit cards can help your credit score- or hurt it, depending on how you use them. It is recommended that you keep your credit utilization below 30 percent. Having significant credit card debt can have a negative impact on your credit score. This can make other debts, like your mortgage and car payments more expensive.
As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.
Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills, and personal loans. There are certain qualifications a consumer must meet regarding income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.
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If you have questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can assist you and address all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild, and recover. The day you hire our firm; we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.