Millions of Americans take on debt and drain savings to afford food

Millions of Americans are facing significant financial strain, forcing them to borrow money or drain their savings just to purchase groceries. This trend highlights the growing challenge of affording basic necessities as the cost of living continues to climb, according to new research.

The Urban Institute, a nonpartisan think tank, found that more than a quarter of working-age adults who used credit cards for grocery purchases were unable to pay their balances in full or missed their minimum payments. Furthermore, about one in ten adults turned to "buy now, pay later" loans for groceries, with roughly a third of them missing a payment last year.

Compounding these issues, approximately 20% of working-age adults reported tapping into long-term savings, such as emergency funds, at least once in the past 12 months to cover food costs. Kassandra Martinchek, a co-author of the study and public policy expert at the Urban Institute, noted the added burden this places on families.

"Families still need to eat. They will still need to pay for their basic needs," Martinchek told CBS News. "Now they have the additional burden of also needing to repay debt, it could constrain their ability to meet their basic needs in the future and get back on their financial feet."

Grocery prices have surged by 32% over the last five years, making food affordability a primary concern for many. The study's findings, based on a December survey of 7,500 adults aged 18-64, underscore the affordability pinch experienced by households. Recent inflation has outpaced wage growth, eroding purchasing power, with over three-quarters of Americans reporting in a May CBS News poll that their incomes are not keeping up with inflation.

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Families still need to eat. They will still need to pay for their basic needs. Now they have the additional burden of also needing to repay debt, it could constrain their ability to meet their basic needs in the future and get back on their financial feet.