More and more people were barely making it until next month/salary last year, and the inflation worsened things. Mostly families got hit, with cost for living, food, mobility, energy and school going over the average inflational rise. Debt rates in the private area is growing rapidly, as well as poverty.
Now there's an additional psychological problem: Whenever a normal person recieves extra cash, it mostly gets spent on things this person does not really need. Fpr example, going on vacation for a few days longer, buying the more expensive 2nd hand car, a new television set or even presents, ...whatever.
The "bad mechanics" behind this behaviour is that people map the past and present onto the future, so if they made it until date with an amount of xy per month, they think they can get along like this in the future, too. While observers like us know that people get less for a dollar each year, pay more for the same goods and services each year, i don't have to really tell you how centralized fiat money is "working". Most people don't look at extra money at what it is: A replacement for money they would have spent on other occasions in the past, if they would have had it.
I was in debt when i was young, and i saw everybody around me being in debt doing this, but i plunged every extra cash into my bank account in the reds. When i upped in income, i didn't spend more accordingly, i didn't get a bigger apartment, newer car and such. I made it out in a couple of years, watching people getting wrecked and sometimes jailed because they couldn't adjust. But maybe we didn't really share the same goal, being free of (expensive) debt. At least some of them must have expected to get along like this forever without facing real consequences?