Survey Finds Groceries Are Now the Top Driver of US Credit Card Debt

The mathematical constraint of financing daily necessities is that the balance must be cleared before the billing cycle ends; otherwise, the cost of basic survival compounds at double-digit interest rates. For a growing segment of the consumer economy, that condition no longer holds. A September 2026 survey of consumers carrying at least $10,000 in unsecured debt reveals that 66% used a credit card to pay for groceries over the past year, making food the most commonly financed everyday expense.[1]

Rather than serving as a short-term bridge for emergencies or large discretionary purchases, revolving credit has become a structural load-bearing pillar for basic household operations. Alongside groceries, 47% of respondents charged gas or transportation costs to their cards, 45% financed utility bills, and 33% used credit to cover rent or housing costs.[1][2]

The shift fundamentally alters the composition of American consumer debt. Among individuals carrying a revolving balance, 70% report that the majority of their current debt stems from ordinary day-to-day expenses rather than overspending or planned large purchases. Only 23% identified a planned expense, such as a vehicle or vacation, as the primary driver of their balance.[1]

The macroeconomic backdrop to this shift is a cumulative 32% increase in food costs over the past five years, which has steadily eroded purchasing power. According to an Urban Institute analysis, more than one in four working-age Americans who relied on credit cards to buy groceries were either unable to pay their balance in full or missed their minimum payment entirely. "Families still need to eat. They will still need to pay for their basic needs," Kassandra Martinchek, a public policy expert at the Urban Institute, noted. "Now they have the additional burden of also needing to repay debt."[4]

The strain is not limited to the lowest income brackets. Middle-class households—defined as earning between 200% and 400% of the federal poverty level—saw their rate of missed minimum credit card payments on food jump from 9.3% in 2023 to 12.3% in 2025. When fixed costs cannot be absorbed by income alone, the credit card acts as a pressure valve, converting immediate cash-flow shortages into long-term liabilities.[3]

Relying on borrowed money without a financial cushion accelerates the debt cycle. Only 28% of surveyed debtors report being able to comfortably cover their expenses while still saving for the future. When an unexpected expense occurs—such as a medical bill or a car repair—46% of respondents take on additional debt, adding to a balance that is already compounding.[3]

The aggregate figures reflect this sustained reliance on borrowing. In its second-quarter 2026 report, the Federal Reserve Bank of New York tracked a $21 billion increase in outstanding credit card balances, pushing the national total to $1.26 trillion. While overall household debt decreased slightly to $18.8 trillion due to a drop in mortgage balances, credit card and auto loan balances continued their upward trajectory.[5]

To manage the resulting monthly payments, consumers are increasingly forced to cut back on the very necessities that drove the debt in the first place. To keep up with debt obligations over the past year, 45% of respondents reported reducing their spending on groceries or household essentials—the single most common financial sacrifice reported.[1]

The data describes a closed loop: credit cards cover the grocery bill when income falls short, and then groceries are the first line item cut to make the resulting credit card payment. Because 29% of respondents rely on credit or borrowing every single month just to get through a typical billing cycle, what began as a stopgap measure has calcified into a routine financial strategy.[1][3]

Breaking this cycle requires either a reduction in the cost of basic goods, a sustained increase in real wages, or intervention through debt relief programs. Until the underlying math changes, millions of households will continue to navigate the friction between the immediate necessity of buying food and the long-term cost of financing it.[2][4]