More Americans Are Buying Groceries With Credit Cards. The Long-Term Cost Could Be Painful

More working-age Americans are relying on credit cards to pay for groceries as persistent cost-of-living pressures strain household finances, raising concerns among consumer advocates about the growing use of debt to cover everyday essentials.

A new survey from the Urban Institute found that more than one in three working-age adults used a credit card to purchase groceries in 2025, with many reporting difficulty paying off those balances. The findings point to a growing dependence on revolving credit for necessities rather than discretionary spending.

Financial experts say the trend can become particularly costly when balances are carried from month to month. Unlike short-term borrowing, revolving credit accumulates interest over time, meaning consumers may continue paying for grocery purchases long after the food has been consumed.

The survey reflects broader affordability challenges facing U.S. households. Although inflation has eased from its peak in 2022, food prices remain well above pre-pandemic levels, while many families continue to grapple with higher housing, insurance and utility costs. The U.S. Bureau of Labor Statistics has reported that grocery prices remain elevated despite slower overall inflation.

Credit card balances have also climbed to record levels in recent years. Data from the Federal Reserve Bank of New York shows Americans continue to carry historically high levels of credit card debt, with elevated interest rates making those balances more expensive to repay.

Consumer advocates warn that using credit cards for essential expenses can create a difficult financial cycle. As interest charges accumulate, households may have less income available for future bills, increasing the likelihood that they will rely on credit again for necessities such as groceries.

Many financial counselors recommend prioritizing essential expenses within a household budget where possible and seeking assistance through local food support programs or nonprofit credit counseling services before revolving debt becomes unmanageable.

Organizations such as the National Foundation for Credit Counseling encourage consumers struggling with high-interest debt to seek advice early rather than waiting until payments become difficult.