American households are facing escalating financial pressures at supermarkets, with a significant number turning to credit card debt to manage grocery expenses, as highlighted by recent research.
According to data from the Urban Institute, a 32% rise in food prices over the past five years has led more than a quarter of working-age Americans to use credit cards for basic food purchases. The study reveals that 25.4% of individuals in this demographic now carry credit card debt specifically for groceries.
“Groceries constitute a major portion of household budgets, and the sharp increase in food costs has made affordability a critical issue for many families,” the report notes. “This trend underscores the ongoing challenges in managing daily expenses amid persistent inflation.”
Between 2023 and 2025, the percentage of working-age adults who used credit cards for groceries and failed to meet minimum payments rose, indicating a growing sense of financial strain. This increase aligns with broader economic trends, including supply chain disruptions and geopolitical factors affecting global markets.
While short-term relief at gas stations has provided temporary respite, experts suggest that grocery prices will remain elevated due to ongoing inflationary pressures. Dana M. Peterson, Chief Economist at the Conference Board, warned that the Federal Reserve’s 2% inflation target could take until 2028 to achieve, exacerbating costs at the grocery store.
Further analysis from the Urban Institute shows that 63.2% of working-age Americans charged grocery purchases to credit cards last year. Among these, over 25% struggled with repayment, highlighting the precarious financial situation of many households.
Older data comparisons reveal a worsening trend: credit card payment failures for food-related expenses rose from 7.1% in 2023 to 8.7% in 2025. Additionally, 8.9% of adults opted for “buy now, pay later” plans for food purchases, but 34.8% of these users missed installment payments.
The study also identifies a disproportionate impact on middle-income families, with those earning 200%-400% of the federal poverty level seeing missed payments jump from 9.3% in 2023 to 12.3% in 2025. While credit and savings can offer temporary relief, overreliance on such strategies may lead to long-term financial instability if debt management proves difficult.
