Fox News reports Americans are racking up more credit card debt as still-high inflation and steep interest rates continue to make the cost of everyday necessities more expensive.

The New York Federal Reserve Bank’s quarterly report on household debt and credit, set for release on Tuesday morning, is expected to show that credit card debt hit a new record during the three months from October through December, smashing a previous high of $1.08 trillion, according to Matt Schulz, chief credit analyst LendingTree.

That would mark a major reversal from just three years ago when households rapidly paid off credit card debt with the stimulus payments they received during the COVID-19 pandemic.

The ongoing inflation crisis is one reason that consumers are increasingly relying on credit cards to pay their bills.

While inflation has fallen considerably from a peak of 9.1% notched during June 2022, it remains well above the Federal Reserve’s 2% goal. Additionally, when compared with January 2021, shortly before the inflation crisis started, prices are up a stunning 17.6%.

High inflation has created financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Food prices are up 33.7% from the start of 2021, while shelter costs are up 18.7%, according to FOX Business calculations. Energy prices, meanwhile, are up 32.8%.

The rise in credit card usage and debt is particularly concerning because interest rates are astronomically high. The average credit card annual percentage rate, or APR, is at a high of 20.74%, according to a Bankrate database that goes back to 1985. The previous record was 19% in July 1991.

If people are carrying debt to compensate for steeper prices, they could pay more for items in the long run. For instance, if someone owes $5,000 in debt – which the average American does – current APR levels would mean it would take about 279 months and $8,124 in interest to pay off the debt making the minimum payments.

Officials encourage credit card holders with debt to explore their options, including calling and asking for a lower credit card APR, getting a 0% balance transfer credit card, or reassessing their budget to better tackle the debt.