How are your customers holding up in the face of this financial crunch? If you’re sensing that things are moving a tad slower than usual, you’re not alone. Sure, your average sale might still be relatively high because people do have dollars to spend, but that’s also because you had to raise your prices due to inflation. The bottom line is, it just doesn’t feel as bustling as it once did.

Now, let’s talk numbers. One key indicator of how inflation is affecting our B2C customers is a recent news story in the New York Post. It stated that credit card and car loan defaults have reached a 10-year high. Yes, you read that correctly—defaults at a decade-high. Analysts wasted no time pointing their fingers at inflation as the culprit.
One analyst was quoted as saying, “The increase in delinquencies is symptomatic of the tough decisions these households are having to make right now—decisions like whether to pay their credit card bills, their rent, or buy groceries.” Inflation has pushed people to make difficult choices, and it’s affecting their ability to keep up with their financial commitments.
But why is it so bad? Well, besides everything becoming more expensive, let’s shed some light on the debt situation. The average interest rate on debt currently sits at a staggering 20.6 percent, and credit card debt in the U.S. has soared past the one trillion-dollar mark. Yes, you read that right—one trillion dollars in credit card debt, all carrying an average interest rate of 20.6 percent. It’s a financial puzzle that has left many scratching their heads in disbelief.