TEXAS — The pandemic has caused the price of essentials to go up. And many folks are choosing credit cards over cash.

“As a provider, I really wanted to be able to support my family,” Walker Dunn said.

Dunn and his wife have two kids. He said they made some financial missteps buying a fixer-upper home before relocating to San Antonio.

“We ended up having to max out pretty much all of our credit cards,” Dunn said. “Taking out personal loans through banks. It was just a nightmare.”

The Dunns fell into a hole, struggling to pay their mortgage.

“With the interest payment alone on the credit cards, [it] starts doubling more than what you owe on the credit cards,” Dunn said. “At that point, where do you go?”

Studies show they’re not alone. According to a new report by Upgraded Points, Texas has the 12th highest rate of increased credit card reliance due to inflation. Thirty-six percent of Texans are relying on credit cards to meet their spending needs. And 95% of adults are stressed about recent price increases.

“The categories that increased the most is housing, groceries [and] transportation,” said Vernita Gonzales, a senior housing counselor for Money Management International. “You can’t really do a lot about that. Those are necessities. So consumers begin to fall more heavily on credit cards.”

Vernita Gonzales has worked for Money Management International for more than 30 years as a counselor. She says inflation is having the biggest impact on young adults under 25.

“In January of this year, 120% of the calls we received were in that age group,” Gonzales said. “They are stressed about finances because there’s not enough money to fall back on.”

Inflation rose from 2.3% in 2020 to 7% the next year. Vernita suggests people reach out for help before they get three months behind on bills, messing up their credit.

“Know where you money is going,” Gonzales said. “What are you spending? Where is it going? Can you make changes? Are you willing to make changes?”

MMI assisted Walker five years ago. He’s relieved his credit score is back up after paying off about $90,000 in debt.

“It’s always in the back of my mind, getting back in debt,” Dunn said. “Today, with the inflation, I can see how more and more are struggling to get by... and there is help.”