Authored by Naveen Athrappully via The Epoch Times,
Many American families are struggling to make ends meet on their incomes alone and have resorted to credit cards, payday loans, and Buy Now Pay Later (BNPL) options for groceries, according to nonprofit research center Urban Institute.
The findings are based on a survey of 18-to 64-year-old working-age adults conducted in December 2025. About 8.7 percent of adults said they used a credit card for groceries and were unable to make the minimum payment, up from 7.1 percent in 2023, the Urban Institute said in a July 13 report. This suggests “worsening financial distress” among families.
Almost one in 10 used BNPL to pay for groceries, out of which more than a third missed a timely repayment last year.
About 19.6 percent used savings not meant for daily expenses to buy groceries, while 5.2 percent used cash from a payday loan.
The report highlighted that groceries are one of the largest household budget items for families and that food costs have jumped by about 32 percent over the past five years, posing a challenge for many households.
Adults who reported that their grocery costs increased significantly last year were more likely to use their savings or credit to buy food. According to the report, 51.3 percent of adults said grocery costs rose a lot during the 12 months preceding December 2025.
