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Families are going to drastic lengths to buy basic groceries
USA Today • • business
Key Points:
- Many Americans, including Alexandra Thompson of Tennessee, are struggling with rising grocery and essential costs, leading them to max out credit cards and buy only what they can afford weekly with cash.
- A recent Omnisend survey found that 30% of consumers used credit cards for essentials without expecting to pay off the balance fully, while others borrowed from friends, family, or used savings to cover costs.
- The Urban Institute’s study revealed that over 25% of working-age adults faced challenges repaying credit card debt incurred for groceries, with a growing number missing minimum payments, signaling widespread financial strain.
- Consumers report noticing "shrinkflation"—smaller product sizes at the same prices—and many distrust brands, believing companies use inflation as a pretext for excessive price hikes; nearly half blame government policies for rising costs.
- Despite varying income levels, many families feel squeezed by inflation, with some just missing government assistance thresholds and facing difficult trade-offs between essentials and debt, highlighting broad economic hardship.
