With prices on the rise, Americans in debt are leaning on credit cards to get by — and even to cover the cost of basics, like groceries. Accredited Debt Relief 2026 Everyday Debt Survey found that 66% of indebted Americans have charged a grocery run to their credit card in the past year.

This finding, in addition to the survey’s other insights into the cost of living, lands ahead of the holiday shopping season, when card balances typically climb. But credit card usage has been on the rise already this year: Credit card debt reached $1.26 trillion in the second quarter of 2026, a $21 billion increase from the first quarter and close to the record $1.28 trillion set late last year, the Federal Reserve Bank of New York reported in August 2026. Let’s examine where Americans are using their credit to cover everyday expenses — and why leaning on cards can be a risky choice. 

Key Takeaways

• 66% of indebted Americans have used a credit card to buy groceries in the past year.
• 47% have charged gas or transportation costs, and 45% have charged utilities.
• 29% rely on credit every month, and those balances are building before holiday spending begins.

Groceries Lead the List

Food isn’t optional and for many, the rising cost of groceries makes weekly shopping trips into an appointment with anxiety. Grocery prices rose 2.7% in the 12 months ending in July, with fruits and vegetables up 5.1% and nonalcoholic beverages up 4.1%, the Bureau of Labor Statistics reported in August 2026. 

Pressure from rising prices shows up in household wellbeing, too. In 2024, 13.7% of U.S. households, or 18.3 million, were food insecure at some point during the year, meaning they had difficulty providing enough food for everyone in the household because of a lack of resources, according to the Agriculture Department’s Economic Research Service.

Credit cards are not the only tool people reach for. Buy now, pay later plans have moved into grocery aisles and everyday essentials as well, spreading the cost of a food run across several installments.

When two-thirds of people carrying debt say they have charged groceries in the past 12 months, credit cards become less of a backup plan and more of a lifeline.

Gas and Utilities Are on the Rise, Too

Forty-seven percent of survey respondents have put gas or transportation costs on a credit card, and 45% have covered utilities the same way.

Both categories have seen sharp price increases. Gasoline prices rose 24.6% over the 12 months ending in July, the largest single contributor to a 14.7% jump in the overall energy index, BLS data show. Electricity prices rose 4.2% over the same period and piped natural gas rose 4.3%, each outpacing the 2.5% increase in prices excluding food and energy.

Utilities are another expense that have become a thorn in the side of American households. About 21.5 million U.S. households, roughly one in six, are behind on their energy bills, the National Energy Assistance Directors’ Association reported in February. The group also found the average monthly residential electricity bill rose from about $121 in 2021 to roughly $156 in 2025.

Housing Costs Keep Rising

Given the growing costs of living, it’s no surprise that 33% of respondents said they have covered rent or housing costs with credit.

Keeping up with housing costs is usually considered a top priority. It is the largest fixed expense in most budgets, the consequences of missing it can be immediate. Nearly half of renter households, 49.4%, were housing cost burdened in 2024, spending more than 30% of their income on housing, according to a Congressional Research Service analysis of Census Bureau data published in May. Shelter costs rose another 3.2% in the 12 months ending in July.

That a third of indebted Americans have turned to a card anyway suggests the alternative looked worse.

For Some, It Is Every Month

A single month of relying on credit to get by is one thing. But leaning on it every month, as 29% report, is something else entirely.

Instead of using credit cards as a gap-filler, covering the basics with them every month is a budgeting method — and an expensive one at that. The average interest rate on credit card accounts assessed interest was 22.15% in the second quarter, according to the Federal Reserve’s G.19 consumer credit release published Aug. 7. Revolving balances totaled $1.35 trillion in June.

Monthly reliance also tends to be self-reinforcing. Each month’s charges raise the minimum payment due the next month, which leaves less cash for the following month’s groceries and utilities. The card helps its holder get by while simultaneously trapping them in a cycle of debt. Making only minimum payments keeps the balance in place far longer than most people expect.

What Can Help

Credit card debt doesn’t have to be an endless cycle, though. Your best relief option depends on the size of the balance and the reason behind it.

Utility providers and municipal water departments often offer payment plans or hardship programs that are not advertised, and asking generally costs nothing. Households struggling with heating and cooling bills may qualify for the Low Income Home Energy Assistance Program. And for those that have never tracked the gap between income and expenses, a basic budget is the best place to start seeing how much you really spend in a month, and where.

For dealing with larger balances, Accredited Debt Relief’s program is an excellent option. We work with your creditors to reduce monthly payments and target your entire balance. Accredited Debt Relief clients save an average of $608* per month.

So as the holidays approach, consider the long-term impact of everyday on top of the expenses of the holiday season. Get a free, no-obligation savings estimate, and learn how you can bring some breathing room back into your budget, fast. 

Frequently Asked Questions

Is it bad to put groceries on a credit card?

Not by itself. Charging groceries to a credit card, then paying off that card’s balance in full each month, can help build credit and generate points to use on rewards, at no interest to the cardholder. Carrying the balance, however, means your groceries end up costing you more because of accrued interest. And with average interest rates hovering around 22.15% in the second quarter, per the Federal Reserve, grocery trips can put people deeper into debt. 

How do I know if I’m relying on credit too much?

The amount of debt you have matters just as much as the direction the debt moves. If your balance has not gone down in three months, the minimum payment keeps rising or most charges are recurring necessities rather than one-time purchases, you’re probably looking at a cash flow issue. A free, no-obligation conversation with a Certified Debt Specialist can help you get clarity about where you stand. 

What kinds of debt can a debt relief program help with?

Debt relief programs work with credit cards (including store cards), personal loans, medical bills and some private student loans. They do not cover mortgages and home equity loans, auto loans, federal student loans, tax debt or child support or alimony. Checking your options in a free consultation does not affect your credit.

Sources

“Household Debt Balances Decreased Slightly; Credit Card Delinquency Transition Rates Remained Steady.” Federal Reserve Bank of New York, August 11, 2026.

“Consumer Price Index Summary — July 2026.” U.S. Bureau of Labor Statistics, August 12, 2026.

“Consumer Credit – G.19.” Board of Governors of the Federal Reserve System, August 7, 2026.

“Household Food Security in the United States in 2024.” U.S. Department of Agriculture, Economic Research Service, December 2025.

“Energy Hardship Project — February 2026 Energy Hardship Report.” National Energy Assistance Directors’ Association, February 2026.

“Housing Cost Burdens in 2024: In Brief.” Congressional Research Service, May 13, 2026.

*Based on average client savings. Individual results vary. A free evaluation will show you your estimated monthly savings. The information on this site is provided as a general resource and does not constitute legal, tax, or financial advice. While we strive to ensure accuracy, this content, including any third-party sources referenced, should not be the basis for any financial decision. For guidance specific to your situation, we recommend consulting a qualified professional.