More working-age Americans are relying on credit cards to pay for groceries as elevated food prices continue to strain household budgets, according to a new Urban Institute survey. The findings suggest that many families are increasingly using revolving credit for essential purchases, raising concerns among financial experts about the long-term cost of carrying those balances.
The survey found that more than one in three working-age adults used a credit card to buy groceries in 2025. Many of those respondents also reported difficulty paying off their balances, indicating that credit cards are being used for necessities rather than discretionary spending.
The trend comes as households continue to face affordability challenges despite inflation slowing from its 2022 peak. While overall price increases have moderated, grocery costs remain well above pre-pandemic levels, according to the U.S. Bureau of Labor Statistics, leaving many families with higher monthly expenses.
Consumer advocates say relying on credit cards for everyday necessities can become increasingly expensive when balances are carried from month to month. Unlike short-term borrowing that is repaid quickly, revolving credit continues to accumulate interest, meaning consumers may still be paying for grocery purchases long after those items have been consumed.
The survey also reflects broader financial pressures affecting U.S. households. In addition to higher food prices, many families continue to face increased costs for housing, insurance and utilities, making it more difficult to cover routine expenses with current income.
Credit card debt has also continued to rise nationwide. According to data from the Federal Reserve Bank of New York, Americans are carrying historically high levels of credit card balances, while elevated interest rates have made those debts more costly to repay.
Financial experts warn that using credit cards to cover essential expenses can create an ongoing cycle of debt. As interest charges grow, households may have less money available for future bills, increasing the likelihood that they will once again rely on credit to purchase necessities such as groceries.
Consumer advocates encourage households struggling with high-interest debt to seek assistance before balances become unmanageable. Organizations such as the National Foundation for Credit Counseling recommend reaching out for guidance early rather than waiting until payments become difficult, while financial counselors also suggest exploring local food assistance programs where available.
