Millions of Americans are resorting to borrowing money or depleting their savings to purchase groceries due to the rising cost of living, according to new research from the Urban Institute.

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The study found that a significant number of working-age adults are using credit cards or “buy now, pay later” loans to cover grocery expenses, with many struggling to make payments.

About 20% of working-age adults tapped long-term savings not intended for everyday expenses to pay for groceries in the last 12 months.

The increase in grocery prices has exacerbated financial strain for households, leading to concerns about food affordability.

Grocery prices have jumped 32% over the past five years.

More adults are using credit cards to pay for groceries but failing to make the minimum payment to avoid interest charges, with the share rising by 1.6 percentage points since 2023.

About 12% of low- and middle-income adults who used credit cards to pay for groceries missed a minimum payment last year, triple the rate for higher-income consumers.

The findings highlight the growing financial challenges faced by many Americans as inflation outpaces wage growth, impacting their ability to meet basic needs and manage debt.

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