Expert warns against using credit cards as a piggy bank as U.S. household debt hits record high.

US credit cardholders now owe $986 billion in debt, the highest since 2019, as inflation and high interest rates force some households to lean on credit cards to meet basic monthly expenses. Financial experts warn that credit cards should not be used as a piggy bank and should only be used within the context of a monthly budget. Overspending and falling behind on payments can be detrimental to credit scores, and missed payments can drop scores by as much as 180 points and stay on credit reports for up to 7 years. One way to minimize credit card debt is to transfer balances to a 0% balance transfer card, but credit card issuers typically charge between 3% to 5% of the balance for each transfer.