Americans Rely on Debt and Savings to Manage Food Costs

WHO:

CBS News - Kassandra Martinchek, co-author of the study and public policy expert at the Urban Institute.

CBS News - Urban Institute, a nonpartisan think tank.

WHAT:

CBS News - Millions of Americans are borrowing money or draining savings to buy groceries.

CBS News - More than a quarter of working-age adults who relied on credit cards to buy groceries were either unable to pay their balance in full or missed their minimum payment.

CBS News - About one in 10 adults relied on "buy now, pay later" loans to cover their groceries, with about a third missing a payment last year.

CBS News - About 20% of working-age adults tapped long-term savings not intended for everyday expenses to pay for groceries at least once in the last 12 months.

CBS News - Grocery prices have jumped 32% over the past five years.

CBS News - In 2026, price increases have reaccelerated due to the Iran war, driving up energy costs and pushing consumer prices to their highest level in more than three years.

CBS News - More than three-quarters of Americans said their incomes aren't keeping up with inflation in a May CBS News poll.

CBS News - The share of adults using credit cards to pay for groceries but failing to make the minimum payment rose by 1.6 percentage points since 2023.

CBS News - About 12% of low- and middle-income adults who used credit cards to pay for groceries missed a minimum payment last year, triple the rate for higher-income consumers.

CBS News - Enrollment in the Supplemental Nutrition Assistance Program (SNAP) has fallen sharply, with about 37 million people enrolled as of March, a decline of almost 5 million from a year earlier.

WHY:

CBS News - The financial strain many households face is due to rising living costs and elevated inflation over the past five years.

CBS News - The increase in grocery prices has created a significant affordability concern for many Americans.

HOW:

CBS News - Consumers are using credit cards and "buy now, pay later" loans to manage grocery expenses, often leading to missed payments and financial distress.

CBS News - Missing a minimum payment can result in a late fee of up to $30 for the first offense, with penalties rising to $41 for each subsequent late payment.

(UPDATED July 13, 2026 14:48 UTC)

A new study from the Urban Institute reveals that millions of Americans are borrowing money or draining their savings just to buy groceries, with more than a quarter of working-age adults relying on credit cards and struggling to make their payments. The financial strain is largely attributed to rising living costs and a significant 32% increase in grocery prices over the past five years, exacerbated by the ongoing Iran war which has driven consumer prices to their highest levels in over three years. As a result, many consumers are turning to "buy now, pay later" loans, leading to missed payments and potential late fees, while enrollment in the Supplemental Nutrition Assistance Program has sharply declined to about 37 million people.