A growing number of American households are relying on credit cards and emergency savings to cover the rising cost of groceries, according to a new study from the Urban Institute. The research, which surveyed 7,500 working-age adults, highlights the severe financial strain caused by five years of elevated inflation and recent economic volatility. With grocery prices having surged 32% since 2021, many families are finding that their regular incomes are no longer sufficient to meet basic nutritional needs.
The data reveals that more than a quarter of working-age adults who used credit cards for grocery purchases were unable to pay their full balance or missed a minimum payment. Additionally, about one in ten adults turned to buy now, pay later services to afford food, with roughly a third of those users missing at least one payment last year. These findings suggest that for many, the necessity of eating has created a cycle of debt that threatens long-term financial stability.
Beyond credit, the study found that approximately 20% of working-age adults have dipped into long-term savings or emergency funds in the past year to pay for food. Experts warn that depleting these reserves leaves households more vulnerable to future economic shocks, such as unexpected medical bills or job loss. The situation is further complicated by reaccelerating inflation in 2026, driven by rising energy costs linked to the ongoing war in Iran.
As families struggle to balance immediate survival with the burden of mounting debt, the long-term consequences remain a significant concern for policymakers and economists. With wage growth failing to keep pace with the cost of living, many households are losing purchasing power, forcing them to make difficult tradeoffs between food, housing, and other essential expenses. The path to financial recovery for these families is increasingly uncertain as they navigate a landscape of persistent price increases.