The survey also highlighted Americans' growing concerns about debt and the economy
American households have been forced to make tough choices as persistent inflation continues to reshape spending habits, according to a new survey from TD Bank.
Nearly 90% of respondents said rising prices have affected their spending, with almost a third pulling back on nonessential purchases and about one in five seeking more discounts and promotions.
“The cost of living continues to rise, making it even more important to have a good grasp on your finances and the tools available to you,” Chris Fred, head of credit cards and unsecured lending at TD Bank, said.
The survey, conducted from August 13 to 15, 2025 among 1,013 US adults with credit cards, found that inflation is squeezing Americans across income brackets.
Even among households earning $100,000 or more, 84% reported feeling the pinch, compared to 88% of those earning under $50,000.
Grocery and gas costs lead household spending
The Commerce Department’s August data revealed that the core personal consumption expenditures (PCE) price index—excluding volatile food and energy—rose 0.2% for the month. Spending and income figures also came in above estimates, with personal income up 0.4% and consumption accelerating 0.6%.
However, the TD survey found that groceries have become the top credit card spending category for 46% of respondents, with gas coming in second at 13%.
“There is a common misperception of credit card spending as frivolous, but that just isn't the reality for most Americans,” Fred said.
“These survey findings show that Americans are using credit cards to buy essentials like gas and groceries, and they are maximizing the rewards like cash back to make the most of their spend.”
Nearly half (49%) said their grocery spending increased most over the past year, while 10% cited gasoline. Discretionary spending categories such as restaurants, entertainment, and travel lagged far behind.
Credit card debt and economic uncertainty
The survey also highlighted Americans’ growing concerns about debt and the economy. Seventy-three percent reported carrying credit card debt, with more than half owing less than $6,000 and 10% carrying balances of $10,000 or more.
Repayment habits varied: 32% pay more than the minimum due, but 11% pay only the minimum and 3% pay when able. A quarter of those with debt said they are very concerned about their level of debt.
Cash back rewards emerged as the most valued credit card benefit, with 35% of respondents prioritizing rewards over low interest rates or fees.
Choice Mortgage Group’s chief growth officer, Brian Mozley, notes that clients today are significantly more likely to back out of a contract if any uncertainty or hiccup arises during the processhttps://t.co/1vIoLPtvuN
— Mortgage Professional America Magazine (@MPAMagazineUS) September 15, 2025
What it means for housing and mortgage costs
As inflation drives up the cost of essentials, Americans have less room in their budgets for housing expenses. This could dampen demand for home purchases and put upward pressure on mortgage delinquencies.
Higher everyday costs can erode the ability of first-time buyers to save for down payments or qualify for loans. With nearly three-quarters of survey respondents carrying credit card debt, the ripple effects on mortgage qualification and homeownership rates bear watching.
“There's an income crunch right now where their income has not gone up. Appreciation and inflation have gone up, so it's a lot more difficult for them to buy a home,” Brian Mozley, chief growth officer at Choice Mortgage Group, told Mortgage Professional America.
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