Issue: Lower-income families are going into debt to pay for groceries due to inflation and increased costs of everyday essentials.
Study Findings:
17.8% of adults resorted to using credit cards or buy-now-pay-later (BNPL) methods for groceries in the past year.
37% of those who used BNPL for groceries reported missing payments on those loans.
Almost one in five adults used savings not intended for routine living expenses to pay for groceries.
Debt Repayment Challenges:
Adults with very low food security face more debt repayment challenges.
Half of those in this category paid for groceries with a credit card and either paid less than the full balance or missed minimum payments.
Recommendations:
The report suggests the importance of programs like the Supplemental Nutrition Assistance Program (SNAP) to help families cover their costs or provide debt management services.
Credit Card Usage:
Credit cards are a popular method for grocery purchases, with over a third of grocery transactions made using credit cards.
60.5% of adults reported their families using credit cards for groceries during the year.
While 20% paid less than the full balance, most adults paid off their credit card bills in full for grocery purchases.
This information highlights the financial strain faced by lower-income families in meeting their basic food needs and the reliance on credit cards and savings to cover grocery expenses. The report emphasizes the importance of support programs like SNAP to assist families in managing their costs effectively.
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