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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Jordan RosenfeldTue, Aug 26, 2025, 4:51 PM 4 min readIn the current economic conditions, where inflation has kept prices high and interest rates are slow to budge, every dollar feels like it disappears faster. You’re not just paying more for groceries, gas and housing, you’re also paying more to borrow the money that covers them.Find Out: Dave Ramsey Says This is the Best Way to Pay Off DebtRead Next: 10 Genius Things Warren Buffett Says To Do With Your MoneyThat double hit can drain your bank account and your peace of mind, leaving many Americans feeling like they’re working harder just to stand still.If you’re considering taking on new credit debt to ease your finances, experts explained why it’s not a good idea to take it on if inflation rises in 2026.When inflation is high, you’re already paying more for everything, from groceries to gas and housing, according to Joseph Camberato, CEO of NationalBusinessCapital.com.“If you have to borrow, you’re borrowing more dollars just to cover the same expenses.” Bigger loans means paying more in interest, too.Learn More: The $50 Mistake Warren Buffett Says Everyone Should AvoidHigh inflation also does much more than increase the numbers on a statement. “It presses on every emotional bruise money has ever left,” according to Michele Paiva, finance therapist at The Finance TherapistShe hears from people reporting “lying awake at night wondering how to keep food on the table, trying to smile through family dinners while silently calculating which bill they can pay late, and feeling their chest tighten every time a payment reminder pops up on their phone.”Debt during high inflation then adds more emotional stress, “pulling you further from peace of mind,” Paiva said.In practical terms, interest rates often rise alongside inflation, so the cost of carrying a balance grows heavier with every month, Paiva said. “A $10,000 credit card balance that once cost $150 in interest can suddenly demand $250 or more, forcing families to sacrifice groceries, fuel or medication just to keep up with the minimum payment.”Indeed, Camberato said that right now, “interest rates are the real killer.” While inflation has cooled (which just means it isn’t rising as fast as before), rates are still “sky-high,” he pointed out. “Until we see real rate cuts, consumers at every income level are going to feel squeezed.”With interest rates high, every type of loan costs more, including credit cards, mortgages, car loans and student loans, Camberato said.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,489.50 -6.50 (-0.10%)Dow Futures45,711.00 +69.00 (+0.15%)Nasdaq Futures23,559.75 -69.00 (-0.29%)Russell 2000 Futures2,386.90 +7.20 (+0.30%)VIX14.85 +0.23 (+1.57%)Gold3,445.40 -3.20 (-0.09%)PortfolioSign in to access your portfolioSign inTop gainersMDB MongoDB, Inc. 295.70 +81.36 (+37.96%)SATS EchoStar Corporation 58.76 +7.89 (+15.51%)NCNO nCino, Inc. 32.69 +4.00 (+13.94%)LUMN Lumen Technologies, Inc. 5.27 +0.58 (+12.37%)PCT PureCycle Technologies, Inc. 14.86 +1.26 (+9.26%)Top losersTIGR UP Fintech Holding Limited 11.57 -1.25 (-9.75%)NEGG Newegg Commerce, Inc. 60.89 -6.14 (-9.16%)LI Li Auto Inc. 22.60 -2.05 (-8.32%)KNF Knife River Corporation 82.76 -7.39 (-8.20%)SMMT Summit Therapeutics Inc. 24.81 -2.17 (-8.06%)Most activeWBA Walgreens Boots Alliance, Inc. 11.98 +0.06 (+0.50%)OPEN Opendoor Technologies Inc. 4.0200 -0.6800 (-14.47%)NVDA NVIDIA Corporation 181.60 -0.17 (-0.09%)PSNYW Polestar Automotive Holding UK PLC 0.4700 +0.3100 (+193.75%)NIO NIO Inc. 6.34 -0.36 (-5.37%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersNVDA NVIDIA Corporation 181.60 -0.17 (-0.09%)CRWD CrowdStrike Holdings, Inc. 422.61 +5.01 (+1.20%)LUMN Lumen Technologies, Inc. 5.27 +0.58 (+12.37%)SNOW Snowflake Inc. 200.39 +6.04 (+3.11%)CRWV CoreWeave, Inc. 96.93 +5.54 (+6.06%)Top economic events