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How Using Credit Cards for Basic Expenses Fuels the Debt Cycle

Americans increasingly rely on credit cards and unsecured debt to cover basic everyday expenses like groceries, according to survey data released by Atomik Research. Conducted on behalf of the debt consolidation firm Accredited Debt Relief, the survey of…

How Using Credit Cards for Basic Expenses Fuels the Debt Cycle

Americans increasingly rely on credit cards and unsecured debt to cover basic everyday expenses like groceries, according to survey data released by Atomik Research. Conducted on behalf of the debt consolidation firm Accredited Debt Relief, the survey of 2,000 U.S. adults with at least $10,000 in unsecured debt highlights a growing shift from credit cards as emergency tools to instruments for managing routine living costs.

Groceries and Utilities Drive Daily Credit Card Reliance

According to the Atomik Research findings, 66% of respondents used a credit card to purchase groceries within the past year. Beyond food, everyday survival costs dominate card statements: 47% of participants reported using credit for gas or transportation, 45% for utilities, and 33% for rent or housing costs. Nearly 3 in 10 respondents admitted they rely on credit or borrowing just to get through a typical month, while one-third noted their dependence on credit has increased compared to the previous year.

Emergencies Compound Long-Term Debt Cycles

Using credit for recurring bills leaves households vulnerable when unexpected expenses hit. The data shows that 46% of respondents take on additional debt at least most of the time an emergency occurs. Without an executable repayment plan, these balances accumulate rapidly. Breaking this cycle proves difficult due to a widespread lack of financial cushions. Only 28% of respondents reported they can comfortably cover expenses and save money.

Income Stagnation and Mental Health Impacts

Financial strain extends beyond household ledgers into personal well-being. According to the survey, 45% of participants stated their income is enough to get by but not get ahead, forcing many to put off savings and vacations. Furthermore, 29% identified the cost of everyday expenses as the single biggest barrier to reducing debt. This persistent financial pressure takes a severe toll, with 25% of respondents expressing concern over their financial future, 12% worried about long-term instability, and nearly 7 in 10 reporting that debt has negatively affected their mental health.

Covering Basic Expenses with Credit Cards Adds to the Growing Debt Cycle
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About the author: Marcus Liu - Business Editor

MBA and ex‑B bureau chief specializing in global finance and fintech. Marcus speaks Mandarin, Japanese, and English, and has interviewed CEOs from the Fortune 50 to Y‑Combinator unicorns. Marcus Liu delivers sharp analysis on markets, startups, and corporate strategy for investors and entrepreneurs alike.