Millions of Americans are using credit cards, buy now, pay later loans and personal savings to pay for groceries, with growing numbers unable to keep up with repayments as food prices remain well above pre-pandemic levels, according to new research from the Urban Institute.
The Washington-based think tank found that more than one in four working-age adults who used credit cards for groceries either carried balances they could not fully repay or failed to consistently make minimum payments. Nearly one in five also said they had tapped savings intended for longer-term needs to cover food bills, while almost one in 10 turned to buy now, pay later financing.
