Increased Use of Buy Now, Pay Later Loans for Groceries

SOURCE www.nbcnews.com
A growing number of Americans are using buy now, pay later loans to buy groceries, with more people paying those bills late, indicating financial strain due to an uncertain economy, persistent inflation, high interest rates, and concerns around tariffs.

Key Points

  • Around half of surveyed consumers have used buy now, pay later services
  • 25% of respondents used BNPL loans to buy groceries, up from previous years
  • 41% made a late payment on a BNPL loan in the past year
  • 60% of BNPL users have had multiple loans at once

Pros

  • Allows consumers to split up purchases into smaller payments
  • Often do not charge interest, unlike credit cards

Cons

  • Consumers may face high fees if payments are late
  • Risk of mismanagement if multiple loans are stacked up