Full Breakdown
Surge in Credit-Card Use Highlights Growing Consumer Financial Strain
7/15/2026, 9:54:54 PM
Recent Trends in Card Spending
In the first quarter of 2026, Bank of America, Citigroup and JPMorgan Chase all reported that credit-card usage was higher than in the same period a year earlier. The same data show a noticeable shift toward larger purchases of travel, entertainment and even everyday necessities such as fuel. A parallel study released by the Urban Institute found that a cumulative 32 % rise in food prices over the past five years has pushed more than one-quarter of working-age Americans to rely on credit cards for grocery bills.
Background: Inflation-Driven Cost Pressures
Rising food costs, higher gasoline prices and the ongoing expense of major events—such as the FIFA World Cup and summer music festivals—have squeezed household budgets. Bank of America’s head of consumer card products, Lora Monfared, linked the uptick to “cruise lines, airfare … [the] FIFA World Cup is happening right now,” and added that “things like fuel” are also driving higher balances.
Key Voices on the Issue
- Lora Monfared (Bank of America) – highlighted elevated spending in host cities and on travel-related categories.
- Merrill J. Reynolds, managing director of executive education at Southern Methodist University’s Cox School, warned that credit-card debt exceeding 30 % of available credit can damage scores and raise borrowing costs.
- Urban Institute analysts described groceries as “one of the largest household budget items” and noted a rise in the share of adults who “paid for groceries with a credit card and did not make the minimum payment.”
Data Snapshot
- Credit-card use up year-over-year across the three largest U.S. banks (2026 Q1).
- Food costs up 32 % over the last five years (Urban Institute).
- 63.2 % of adults aged 18-64 charged grocery purchases to credit cards in 2025.
- Missed minimum payments on grocery-related cards rose from 7.1 % in 2023 to 8.7 % in 2025.
- Among middle-income earners (200-400 % of the federal poverty level), missed payments climbed from 9.3 % to 12.3 % over the same period.
Consumer Perspective
Katrina Linden, a 32-year-old who financed Coachella tickets, ski trips and camping gear on credit, said, “It’s clear that homeownership is out of reach for me, at least for the time being… I’m trying to move away from saving for a future that might not even be possible, and spending more on immediate experiences.” Linden makes only the minimum payment each month and carries a balance, reflecting a broader pattern of consumers prioritizing short-term experiences over long-term savings.
Criticism & Risks
Reynolds cautioned that “credit-card delinquencies are an early sign of problems with the economy,” and warned that rising balances could eventually jeopardize mortgage and auto-loan repayments. The Urban Institute echoed this concern, noting that “relying too much on these strategies may lead to financial instability if they have a hard time keeping up with debt.”
Conflicting Reports & Gaps
While banks report higher overall usage, they do not provide detailed delinquency forecasts, and the Urban Institute’s study stops at 2025, leaving uncertainty about longer-term credit health and the potential ripple effects on broader loan markets.
Verbatim Quotes
- “Cruise lines, airfare … [the] FIFA World Cup is happening right now,” — Lora Monfared, Head of Consumer Card Products, Bank of America
- “Things like fuel,” — Lora Monfared, Head of Consumer Card Products, Bank of America
- “You won't be able to get credit as easy, and if you're successful in getting credit, it's going to probably cost you more from a loan standpoint,” — Merrill J. Reynolds, Managing Director, SMU Cox School of Business
- “Between 2023 and 2025, the share of working-age adults who paid for groceries with a credit card and did not make the minimum payment increased, signaling worsening financial distress among families.” — Urban Institute report
- “relying too much on these strategies may lead to financial instability if they have a hard time keeping up with debt or do not recover financially after drawing down savings.” — Urban Institute report
