Why Grocery Bills Can Keep Costing You Months Later

For decades, credit cards have made shopping and managing finances easier for consumers. But some people now rely on their cards for more than convenience. They need them to purchase one of life’s most essential necessities — groceries.

But the cost of paying for groceries with a credit card can become higher for consumers if they don’t pay their credit card bills in full and on time.

According to a new study from the nonprofit research organization Urban Institute, some shoppers who are seeing significantly higher grocery prices are buying grocery items with credit cards and failing to pay the minimum amount due on their card statements.

Consumers can choose not to go on vacation or buy a new video game if those purchases become too expensive. They can’t choose to stop buying food. And since grocery shopping is an ongoing expense, families don’t have much time to recover before the next bill comes around.

When the cost of groceries stretches a consumer’s household budget to the limit, they may find that turning to a credit card is their best bet to keep food on the table for their family. But the survey from the Urban Institute highlighted why that practice may turn into a financial problem for some shoppers.

The Urban Institute surveyed more than 10,000 adults in December 2025, including more than 7,500 adults ages 18 to 64 and 2,500 adults ages 65 and older. The authors of a brief on the survey explained why the topic is such a timely one for consumers today.

“Today, families face persistently higher grocery prices than they did five years ago,” the authors wrote. “Although access to credit and savings can provide a lifeline and help families smooth household spending, overreliance on these resources may lead to financial instability if they have a hard time keeping up with debt or rebuilding savings.”

The institute’s analysis of the survey results reveals that — when it comes to using a credit card to pay for groceries — shoppers have a wide variety of repayment habits. The good news is that 34.9% of adults ages 18 to 64 bought groceries with a credit card and always paid their balances in full.

How Americans Pay Off Grocery Purchases

Source: Urban Institute, December 2025 Well-Being and Basic Needs Survey.

Shoppers who pay their credit card balances in full each month can access savings if their cards offer them cash back rewards on their spending. And some credit card programs even offer boosted perks when people use them at grocery stores.

But consumers who carry balances on their cards from one month to the next may not benefit as much from using a rewards card if the interest charges they accrue outweigh the benefits they earn.

Another 19.6% of adults ages 18 to 64 bought groceries with a credit card and did not always pay the full balance, though they always made the minimum payment. Meanwhile, 8.7% bought groceries with a card and did not always make the minimum payment.

More than half of the adults ages 18 to 64 reported that their grocery bills had increased a lot over the past year. Among adults who reported such an increase, 12.4% bought groceries with a credit card and did not always make the minimum payment.

Price hikes can be particularly painful when they affect items that regularly appear on people’s shopping lists. A new NBC News report reveals that some consumer staples have seen significant price increases since the beginning of last year.

Prices on ground beef have shot up 22% since January 2025, and the average price of orange juice has increased by 26% over the same period, according to the report. And some believe prices may not come down anytime soon.

0.0%28.3% Bought groceries with a credit card and faced repayment challenges

They say that what goes up must come down, but food prices may not.

Fox Business reported that problems affecting supply chains and global trade, along with geopolitical shocks, may prevent prices from falling in the near future. Consumers could be waiting even longer for inflation to return to the Fed's goal. Dana M. Peterson, Chief Economist at The Conference Board, told Fox News Digital that may not happen until 2028.

Consumers who use credit cards to keep food on the table may find that the strategy works for a while. But if their grocery charges continue to add up each month, they may soon owe more than they can comfortably repay.

Those shoppers may also pay interest on their grocery purchases. Missing a required payment can result in a late fee. It can also hurt the consumer’s credit if the missed payment is reported to the credit bureaus.