Overview
- The Urban Institute’s December survey, reported Monday, found millions of working‑age adults used credit cards, buy‑now‑pay‑later loans, payday-style credit or long‑term savings to buy groceries and that more than a quarter of grocery‑charging credit‑card users could not pay their balance in full or missed a minimum payment.
- About 10 percent of adults used buy‑now‑pay‑later for groceries and roughly one in three of those borrowers missed a payment, while about 20 percent tapped long‑term savings not intended for daily expenses to cover food costs.
- Grocery prices have risen about 32 percent over the past five years and 'food at home' grew 2.7 percent year‑over‑year, trends experts link to higher fuel and fertilizer costs from the Iran war that are expected to keep energy and food prices elevated for years.
- SNAP enrollment fell by nearly 5 million to about 37 million after the 2025 Republican law added new work requirements, reducing a key safety net and coinciding with increased use of credit for groceries.
- Lower‑income households are far more likely to miss credit‑card or BNPL payments and to deplete savings, which triggers late fees and penalty APRs that can deepen debt and limit families’ ability to meet future basic needs.