Writer: Lucy Lazarony
Editor: Adam West
Reviewer: Ashley Fricker
Key Takeaways
Americans aren’t just charging groceries. Many are carrying the debt — and some are missing minimum payments.
More than one in four adults ages 18 to 64 bought groceries with credit cards and then carried a balance or missed a minimum payment, according to new data from the Urban Institute.
Let’s break that down into specifics. According to the data, 19.6% of working age Americans used credit cards to buy groceries, did not pay the bills in full, but always made the minimum payments due on their cards.
How Americans Are Charging Groceries
Source: Urban Institute
And 8.7% of surveyed adults did not always make the minimum payments due on their credit cards for the groceries they charged.
There is some good news to report. Almost 35% of adults bought groceries with credit cards and paid the bills in full. So they were able to charge their groceries without paying a penny of interest, which is ideal.
The data says low- to moderate-income Americans struggled the most to pay for the groceries they charged on credit cards. More than half of these Americans who paid for groceries with credit cards did not always pay the balance in full.
Other Ways to Pay at the Grocery Store
Working-age adults also are using Buy Now, Pay Later options to pay for groceries, according to the data.
How popular are these options? Nearly one in 10 adults surveyed said their families had used BNPL to buy groceries in the previous 12 months, but not all who use BNPL could manage the payments. Indeed, 34.8% of adults using BNPL to buy groceries missed a payment.
Dipping into savings is another way Americans are paying their grocery bills. Almost 20% of Americans reported paying for groceries with savings. Other Americans chose the more expensive option of payday lending. Almost 1 in 20 working-age adults, 5.2%, used money from a recent payday loan to buy groceries.
How to Cut Costs at the Grocery Store
Just over half, 51.3%, of working-age adults reported that their grocery costs had increased significantly in the past 12 months. Here are some tips for lowering costs at the grocery store.
Shop budget-friendly grocers such as Aldi, Trader Joe’s, and Walmart where you’ll likely find lower prices than you would at a traditional grocery store. Shopping farmer’s markets for deals on fresh, local produce is another option.
Save money by shopping store-brand items and passing on more expensive name-brand choices. Choose lower cost protein choices such as chicken and beans over more expensive beef.
While inflation has increased grocery prices, savvy consumers can find ways to lessen the impact through smart shopping strategies.
Check out a store’s sales flyer and plan meals around these discounted items. Make use of discounts available in a grocery store’s app. There may be coupons and rewards.
Try to limit your grocery shopping to once a week. Shop the top and bottom of store shelves. This is where you’ll often find the best deals.
Check out your pantry before you head to a grocery store. What meals can you already make? And what items do you need to complete a meal? Consider store sales and discounts as you make a shopping list. Shop according to a list but keep your eye out for sale items you may come across in your shopping.
