Starting with inflation, a dangerous dynamic arose in the United States. Given the marking increase in food prices During the last months, More and more people are turning to credit cards or other similar tools to acquire this type of products, which has the risk of a debt process from which it is increasingly difficult to get out. This problem especially affects sectors with lower income levels, where there is a significant percentage of Latinos.
As a result of the increase in prices and the difficulty of having all the money necessary for a purchase available, More and more people are turning to credit cards when paying for groceries.. According to research by the Urban Institute that was published by Telemundoduring 2023 70 percent of grocery purchases were made with credit or debit cards.
Beyond the difference between the two modalities and that greater details would be needed to know specifically what refers to credit, This was accompanied by an increasing trend in methods such as loans or modalities that allow consumption and then pay.
This situation is accompanied by a sharp rise in the percentage of delinquencies in credit card debts in the United States. According to data from the Federal Reserve Bank of St. Louis, delinquencies currently stand at 21 percent, when in the first quarter of 2022 it was 14 percent. This mainly affects the poorest sectors among those who have access to a credit card, where a large percentage of migrants are found, mostly Latinos.
Expert recommendations on using credit cards to buy food in the United States
According to financial experts consulted by Telemundo, The best idea is to make purchases in cash to use the right amount of money that can be allocated to the purchase and not exceed it. If this is not possible, given the high interest rates on credit cards In the United States, if they are used, it is recommended to spend the least amount of money possible and always pay the full amount of the monthly debt.
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