A recent survey by the Urban Institute reveals that a growing number of working-age adults in the U. S. are turning to debt to afford groceries. This trend is particularly pronounced among low-income families, who are facing significant challenges in managing rising food costs.
Survey Findings: Nearly two-thirds of working-age adults (ages 18-64) reported using credit cards to buy groceries.Of these:
34.9% claimed they would pay off their credit card balance in full.
19.6% could only make the minimum payment.
8.7% often struggle to make even the minimum payment.
Debt Usage:
Nearly 10% of working-age adults utilized Buy Now, Pay Later (BNPL) options for groceries, with over a third missing at least one payment.
Additionally, about 19.6% have tapped into long-term savings to cover grocery costs, and 5% have taken payday loans for essentials.
Impact on Low-Income Families: The survey highlights that low- and moderate-income households are hit hardest:
More than half of these families are relying on debt to buy groceries.
In contrast, one-third of higher-income adults also struggle but report better financial stability.
Growing Financial Strain: The data shows a worrying increase in financial distress:
There is a 1.6% rise in those unable to meet all minimum payment obligations compared to 2023.
More than half of working-age adults perceive significant increases in grocery prices.
Between June 2025 and June 2026, food prices rose by 2.7%, with fruits and vegetables experiencing the highest spikes at 5.3%.
Long-term Effects of Debt: Research author Kassandra Martinchek warns that utilizing savings and borrowing for short-term needs can lead to long-term financial instability and hinder the path to financial independence. Continuous failure to make minimum payments can negatively impact individuals’ creditworthiness.
The findings from the Urban Institute underscore the ongoing food affordability crisis in the U. S. Many families, particularly those with lower incomes, find themselves increasingly reliant on debt to secure basic necessities like food. This cycle of borrowing could lead to even greater financial difficulties in the future, further complicating efforts to attain financial stability. The reliance on credit cards, BNPL services, and loans to cover grocery bills highlights a pressing socioeconomic issue that needs addressing.
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