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More Americans are relying on credit cards to buy groceries, new study finds
Fox Business • • business
Key Points:
- A new Urban Institute study reveals that a 32% rise in food costs over five years has forced over one in four working-age Americans to use credit card debt to pay for groceries.
- The report highlights worsening financial distress, with an increasing share of adults unable to make minimum credit card payments for grocery purchases, rising from 7.1% in 2023 to 8.7% in 2025.
- Middle-income families, earning 200% to 400% of the federal poverty level, are particularly affected, with missed credit card payments on food increasing from 9.3% to 12.3% over the same period.
- Despite temporary relief at the gas pump, ongoing supply chain issues and global economic shocks are expected to keep food prices elevated, with inflation targets unlikely to be met before 2028.
- The study warns that while credit and savings can help families cope, overreliance on these financial tools may lead to long-term financial instability.
