A recent national survey conducted by Atomik Research for Accredited Debt Relief reveals that a significant share of Americans are financing essential living costs with credit. Of the 2,000 U.S. adults surveyed who carry at least $10,000 in unsecured debt, 33% reported using a credit card or borrowing money to pay rent or other housing expenses in the past year.
Credit Use Extends Beyond Housing
The same respondents identified other essential categories where credit is being used. Groceries topped the list at 66%, followed by gas or transportation at 47% and utilities at 45%. Housing, at roughly one in three respondents, sits alongside these necessities as a major expense being financed.
Impact on Household Budgets
When asked what they had postponed or cut back on because of debt, participants named vacations (41%) and building savings (40%) as the most common sacrifices. In contrast, essential items such as groceries and housing payments are increasingly being charged to credit cards.
Because most landlords and mortgage servicers do not accept credit cards directly, many borrowers rely on third‑party platforms that charge processing fees, or they take cash advances that carry higher interest rates and begin accruing interest immediately. Both methods increase the overall cost of the housing payment beyond the amount stated on a lease.
Debt Payments Displacing Essentials
Further data from Accredited Debt Relief’s Debt Impact Survey, conducted by Drive Research, shows how debt pressures are reshaping spending priorities. Forty‑five percent of respondents reported cutting back on groceries or household essentials, 25% delayed utility payments, and 16% skipped or delayed rent or mortgage payments.
Nearly half of those surveyed (49%) said they are living paycheck to paycheck because of debt obligations, and 31% are making only minimum payments without seeing the balance decrease.
Why Credit Is Reaching Housing
Traditional budgeting wisdom holds that rent is the first expense paid because missing a housing payment can have severe consequences. The survey indicates that while the priority remains, many households are now using money they do not yet have—borrowed funds—to meet that priority.
These findings suggest that for an increasing number of families, income alone is insufficient to cover basic costs, forcing them to rely on credit to keep a roof over their heads.
What This Means for Consumers
Financial experts caution that financing rent with credit can lead to a rapid accumulation of debt, especially given the high interest rates associated with cash advances and third‑party processing fees. Households should consider alternative options such as budgeting assistance, negotiating payment plans with landlords, or seeking community resources before turning to high‑cost credit.
Understanding the extent of credit use for essential expenses can help policymakers and consumer‑advocacy groups target assistance programs to families most at risk of falling deeper into debt.
Original reporting: El Paso News (HLL/CB) — read the source article.
