‘Very depressing': Retiree turned to credit cards for groceries and racked up $10,000 in debt — and she’s not alone

As market prices surge, immoderate Americans are going into indebtedness implicit it, relying connected recognition cards and Buy Now Pay Later (BNPL) options to wage for their food.

Laurie Lumbra, a 72-year-old retired teacher from Rotterdam, New York, lives connected astir $1,400 a month. A fewer years ago, she started paying for groceries with her recognition cards, yet racking up $10,000 worthy of debt.

Must Read

• Jeff Bezos backs a level that lets anyone put successful rental homes for arsenic small arsenic $100 — 6 ways to physique wealthiness similar a landlord without really being 1

• Dave Ramsey warns astir 50% of Americans are making 1 large Social Security mistake. Here's what it is and 3 elemental steps to hole it ASAP

• The taxation breaks successful Trump's 'big beauteous bill' expire aft 2028 — and experts accidental astir radical won't enactment successful time. What to bash earlier the model closes

"It gets precise depressing. You consciousness similar you're conscionable specified a failure," she told Marketplace.

To wage disconnected her debt, she ended up selling her car — and past cutting up her recognition cards to debar going into indebtedness again. She present rides a motorcycle for proscription and uses nutrient banks.

Her communicative whitethorn dependable extreme, but a caller study from Urban Institute indicates that Lumbra is acold from alone. Here's what's happening — and however to debar going into indebtedness implicit your market bill.

Why market prices support going up

You're not imagining higher prices. The Urban Institute's recently released 2025 Well-Being and Basic Needs Survey points to a cumulative summation of 32% successful the outgo of groceries implicit the past 5 years.

And prices aren't going to driblet immoderate clip soon. The Food Price Outlook (FPO) from the U.S. Department of Agriculture's Economic Research Service (ERS) expects that food-at-home prices volition summation 2.7% this twelvemonth and 2.9% successful 2027.

Some categories are expected to spot overmuch higher increases: beef and veal (10.7%), caller vegetables (6.8%) and sweetener and sweets (7.2%), according to the ERS.

Supply concatenation disruptions, labour shortages, planetary struggle and illness outbreaks person each played a relation successful rising nutrient prices. The Russian penetration of Ukraine drove up wheat prices, portion the vertebrate flu led to a spike successful the terms of eggs. Tariffs connected commercialized partners person besides bumped up prices successful immoderate imported nutrient categories (such arsenic tomatoes from Mexico).

Extreme upwind is besides playing a role. For example, galore ranchers person reduced their herds arsenic drought conditions and h2o shortages marque it harder to support livestock, successful crook driving up the outgo of beef.

Following 5 years of elevated inflation, the Iran warfare created substance shortages that person driven up prices, impacting shipping and accumulation costs passim the proviso chain. The warfare is costing the mean American household much than $1,200, Mark Zandi, Moody's Analytics main economist, told NBC News.