Consumers are increasingly using their line of credit due to rising inflation and gas prices. This has been revealed by First Data Corp`s report called Spend Trend. Credit cards are being increasingly used to pay for daily necessities such as gas as well as other basic needs. There has been considerable rise in food and gas prices as well. This is a direct fallout of inflation, but income has not gone up substantially to keep up pace with the inflation.

There has been a 10.7% increase in credit-based purchases in June, when compared to last year. Even single transactions seem to have grown during this period and all this shows a huge jump in the use of credit. The number of transactions has risen to 6.8% in June when compared to last year.

Senior Vice President from First Data, Silvio Tavares has revealed in one of the Bloomberg reports that there has been a huge increase in credit card spends and that probably is due to the rise in price of fuel during that period. Consumers who belonged to the lower-income groups had to use their credit cards for their daily expenses especially on gas and food since they had no other choice.

Taveras also stated that there was no substantial increase in the wages and consumers had no other option to deal with the rising prices and hence used their cards. Due to the severe problem in cash flow, consumers were left with no other choice other than using their line of credit.