Millions of Americans take on debt and drain savings to afford food
Summary
Millions of working-age Americans are borrowing money, using credit cards, and tapping savings to pay for groceries due to rising food prices. Many struggle to make minimum credit card payments, which can lead to extra fees and higher interest, showing growing financial stress for families.Key Facts
- Over 25% of working-age adults who used credit cards for groceries couldn’t pay their balance in full or missed minimum payments.
- About 10% of adults used "buy now, pay later" loans for food; one-third of them missed payments last year.
- Around 20% of working-age adults used long-term savings, like emergency funds, to buy groceries at least once in the past year.
- Grocery prices have risen by 32% in the past five years.
- Inflation and higher energy costs, partly due to the Iran war, have pushed consumer prices to the highest level in over three years.
- Lower-income adults missed minimum credit card payments for groceries at three times the rate of higher-income adults.
- Enrollment in the food assistance program SNAP dropped by nearly 5 million people since new work rules started in 2025.
- Missing credit card payments can result in fees up to $30 for the first late payment and higher interest rates around 30%.
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