As grocery prices have gone up over the last four years, credit card delinquencies have too, according to a new study.
We're talking about people who are at least 60 days past due on their credit card bill.
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From February 2022 to August 2024, credit card delinquencies in North Carolina rose 36.8% to 306,962 people who were two payments late on their credit cards, according to Urban Institute.
During that time, 1 in 4 Americans reported using credit cards and taking on debt just to buy groceries.
5 On Your Side met Jaimie Williams outside a Wake County Harris Teeter. She’d just finished shopping and said she’s been able to avoid having to use a credit card for groceries, but she’s not surprised that delinquencies have shot up.
“I don’t doubt it, because I guess if I had to choose between buying groceries and paying my credit card, I would probably buy groceries,” Williams said.
“We're seeing a problem now that may only get worse,” warned Adam Rust, Director of Financial Services at the Consumer Federation of America.
Rust highlighted two factors working against struggling consumers:
1. Food prices are expected to rise another 3.5% in
2025
2. A federal rule capping credit card late fees at
$8 was scrapped by a judge last month
“The late fees for two months would have been $16, now it's $71,” Rust said about the decision. “That's a concrete difference of $55 for a family that's clearly unable to cover groceries.”
“It's greed versus need. Who are we serving right now? Where do we want to allocate aid?” Rust added. “Do we want to give it to the big banks? Some of them are worth trillions of dollars, or these households that are suddenly saying we can't even cover $25 and we're having to choose between groceries and rent.”
This situation is hitting rural North Carolina hardest, according to the Urban Institute study:
- 13.1% of people in Caswell County are delinquent on their credit card bills, that's the highest rate in the state.
- Edgecombe (12.5%) and Vance (12.3%) counties are close behind.
- More urban counties like Wake (4.9%) and Durham (5.8%) have much lower delinquency rates.
Data table showing county-by-county stats from Urban Institute study
| County | Credit card delinquency rate (2024) | Food cost increase (2022 to 2024) | Percent change in delinquency rate (2022 to 2024) | Adults with credit card delinquencies (2024) |
| Chatham | 2.9% | 6.8% | 23% | 1,112 |
| Cumberland | 9.5% | 5.9% | 27.3% | 12,934 |
| Durham | 5.8% | 5.9% | 34.3% | 8,700 |
| Edgecombe | 12.5% | 4.9% | 21.4% | 1,885 |
| Halifax | 9.2% | 5.9% | 14.7% | 1,434 |
| Harnett | 8% | 5.9% | 29.2% | 4,353 |
| Johnston | 6.9% | 5.9% | 24.7% | 6,639 |
| Lee | 7% | 8.7% | 41.9% | 1,824 |
| Moore | 4.3% | 7.5% | 41.5% | 2,109 |
| Nash | 9.8% | 4.9% | 42.7% | 3,659 |
| Orange | 2.9% | 8.9% | 31.2% | 2,168 |
| Wake | 4.9% | 5.9% | 38.8% | 27,557 |
| Wayne | 7.7% | 4.9% | 33.5% | 3,331 |
| Wilson | 8.5% | 4.9% | 31.5% | 2,395 |
Rust said, when these families fall behind, high prices and big bank fees make it harder for them to catch back up.
“That's really a household that's gone from maybe they could make the minimum payment, they were living paycheck to paycheck, they were starting to struggle. Now they're in that emergency mode where they can't even make a minimum payment,” Rust said.
That inability to pay debts brings additional consequences.
“There are some cascading effects that begin to occur where it isn't just the case that you now are paying more interest; you're receiving additional fees. It's also the case that your credit score is being affected, and that that could impact how you qualify for an apartment, to buy a car, all kinds of things that are really important,” Rust added.
The full study from Urban Institute is available to read online.
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