Urban Institute Finds 1 in 4 Adults Struggle to Repay Grocery Credit as Food Prices Rise 2.7%
Updated
Updated · The New Republic · Jul 13
Urban Institute Finds 1 in 4 Adults Struggle to Repay Grocery Credit as Food Prices Rise 2.7%
3 articles · Updated · The New Republic · Jul 13
Summary
More than one in four working-age adults used credit cards for groceries and had repayment trouble, the Urban Institute found, as higher food costs increasingly spill into household debt.
Food-at-home prices rose 2.7% from May 2025 to May 2026, with the Iran conflict and repeated Strait of Hormuz closures lifting fuel and fertilizer costs that feed through to grocery bills.
The strain extends beyond credit cards: about 10% of adults used buy now, pay later for groceries, 1 in 20 used payday-loan cash, and nearly 20% tapped savings not meant for daily expenses.
Urban Institute researchers said the risk is not using credit itself but carrying balances that can limit future spending, a concern sharpened by nearly 40% growth in credit-card delinquencies between 2022 and 2024.
Longer term, economists expect elevated energy costs to keep food prices under pressure, while tighter SNAP rules and lower benefits could push more grocery spending onto credit.