Many American households are increasingly resorting to debt to cover essential living expenses, particularly groceries, as food prices continue to soar. A recent report from the Urban Institute reveals that over 60% of adults are using credit cards, while a smaller percentage are turning to Buy Now, Pay Later (BNPL) schemes and payday loans to meet their basic needs. The situation is exacerbated by the removal of SNAP emergency allotments that provided crucial support during the pandemic, leading to a significant drop in benefits for many families. The combination of rising food costs and reduced public assistance has created what experts describe as a "hunger cliff," where families struggle to afford food, rent, and utilities. To combat this crisis, experts suggest increasing SNAP benefits, expanding the child tax credit, and implementing accessible small-dollar credit programs. These measures aim to alleviate financial strain and help families navigate the challenges of food insecurity.
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