Debt levels are rising and interest rates remain high. Delinquencies are also on the rise.

We spent more over the holiday, but we bought less — thanks to inflation.

The application rate for any kind of credit dropped to just over 41% this year from nearly 45% in 2022, according to a Fed survey.

But with interest rates high and wage growth slowing, that level of spending is becoming unsustainable.

Yanely Espinal, host of Marketplace’s podcast “Financially Inclined,” tells the story of taking on a financial responsibility she wasn’t prepared for.

In 2022, consumer credit increased 7.8% from the year before. But in December, the growth in borrowing decelerated.

Thales, a French firm, is launching a credit card that interacts with a user’s smartphone to provide audio cues and transaction confirmations.

Credit card balances alone were up 15% in the third quarter. Higher prices for necessities and higher interest rates are contributing factors.

Their debt levels are rising as the holiday shopping season ramps up. It helps that unemployment is low.

That’s the biggest year-over-year increase in 20 years. Inflation is just part of the reason.