Millions of Americans are borrowing funds or depleting savings accounts to cover grocery costs, underscoring the financial pressures households encounter amid rising living expenses, according to fresh analysis.

More than a quarter of working-age adults who used credit cards for groceries could not settle their full balance or skipped minimum payments, per the Urban Institute. Roughly one in 10 adults turned to buy now pay later options for food purchases, and about a third of those missed a payment during the prior year.

Around 20 percent of working-age adults reported drawing from long-term savings not meant for routine costs, such as emergency reserves, at least once in the past year to handle groceries.

Families still require food and must cover essentials, noted Kassandra Martinchek, a study co-author and policy specialist at the Urban Institute. They now carry the extra load of debt repayment, which may limit future ability to address basic needs and regain financial stability.

Grocery prices have climbed 32 percent over five years, elevating food affordability as a key worry, the institute reported. Results stem from a December poll of 7,500 adults aged 18 to 64.

The data highlight the affordability squeeze after years of high inflation. In 2026, price rises have sped up due to the Iran war, lifting energy expenses and driving consumer prices to their highest point in over three years.

In a May CBS News poll, more than three-quarters of Americans indicated incomes lag behind inflation. Recent inflation figures have exceeded wage growth, eroding household purchasing power.

Falling behind

More adults are charging groceries to credit cards without covering minimum payments to dodge interest, with the share increasing 1.6 percentage points since the prior 2023 study. Though modest, this signals more people entering financial strain over daily necessities.

This translates to millions more Americans struggling with minimum payments on credit card grocery charges, Martinchek explained, with the pressure impacting numerous households.

Missing a minimum payment can trigger a late fee up to 30 dollars initially, rising to 41 dollars afterward, per NerdWallet. Consumers may also encounter penalty APRs near 30 percent versus the typical 24 percent rate.

The rise in missed minimum payments represents a harsher coping method often tied to penalty rates or fees, Martinchek added, marking deeper financial distress.

About 12 percent of low- and middle-income adults using credit cards for groceries missed a minimum payment last year, three times the rate for higher-income groups. Lower-income households were four times more likely to miss buy now pay later payments.

SNAP enrollment has dropped sharply after the Republicans 2025 One Big Beautiful Bill Act added work requirements. Around 37 million people were on SNAP as of March, down nearly 5 million from the prior year.

For low- and moderate-income families, groceries form a large budget share, so price hikes leave little room to adjust, Martinchek said.