There are obviously some problems when Americans start giving them new phones or air tickets in the same way as weekly groceries.
New data suggests that's exactly what's going on - for many people, that's not the case.
A new Lendingtree study shows an unsettling shift: more and more people are turning to buying, later payment (BNPL) loans to pay for essentials like groceries, and many are lagging behind payments. An online survey released in April 2025 surveyed 2,000 American adults aged 18 to 79. It found that not only are Americans increasingly using these short-term installment loans to meet basic needs, but about one in five users missed payments.
"A lot of people are struggling and looking for ways to expand their budgets," Matt Schulz, chief consumer finance analyst at Lending Tree, told NBC News. "Inflation is still a problem. Interest rates are still high. There is a lot of uncertainty in tariffs and other economic issues, and it all adds up to a lot of people who are looking for ways to expand their budgets."
According to the survey, 25% of US BNPL users said they have used this method to buy groceries in the past year. For Generation Z, the number jumped to 33%. Of all categories, 41% said they had been late on their BNPL loans last year, a worrying sign that the short-term lifeline has become a long-term burden.
So, why does this happen? Inflation and high grocery prices have supported many Americans into the corner. Even if the overall inflation rate cools, grocery costs are still stubbornly high. The prices of basic staple foods (eggs, bread, milk) keep climbing, and the family budget is thinner in a month.
"For many people, this will mean relying on buying now and paying for good or bad later," Schultz said.
While BNPL loans can provide short-term relief, they are not designed as rottable goods. Originally for discretionary spending on things like electronics or travel, BNPL is now being used to put food on the table - which raises alarms about spending habits and wider economic pressures.
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Companies like Klarna, AfterPay and Confirm offer BNPL plans. The model is simple: divide the purchase into several payments in a few weeks, and if you pay on time, you are usually not interested. The option is easy and built into the checkout page for everything from the target to Doordash.
This frictionless convenience is exactly what makes BNPL so attractive and so risky.
Until recently, BNPL lenders were required to comply with the same rules as credit card companies, including clearer rights to disclosures and dispute allegations. For many purchases, lenders use soft credit or do not use it at all. Users can also open multiple loans on different platforms, often without realizing the speed at which debts accumulate.
Lendingtree's research found that 60% of users immediately opened up multiple BNPL loans. While each payment seems small - there is $25 here and $15 there - the total impact can damage the budget, especially when combined with rent, utilities and gas.
But the danger is obvious: Use debt to buy items you consume in days and then pay off the debt in weeks or months, thus disconnecting between costs and consequences. If you missed the payment? You may face late fees, overdraft fees, and even reach your credit score.
For Americans who feel squeezed, BNPL seems to be a lifeline. However, it is important to use these services strategically, not impulsively.
If you are considering paying for groceries with BNPL, research why your budget doesn’t cover essentials. Are you overspending in other areas? Can you cut your subscription or dine?
If there is really no room for operation and BNPL is the only option to keep food on the table, consider it a serious financial obligation – not just some taps at checkout. Stick to a BNPL provider to better track your payments. Set reminders to avoid late fees. And do not use BNPL for multiple purchases during a single salary period. This is not free money - it is debt and needs to be managed.
If you are in a tough spot, explore grocery assistance programs such as Snap or visit a local food bank. If your income allows, but you want to rely on BNPL anyway, consider building a small buffer in a high yield savings account. The budget app also helps you mark overspending and keep track.
This article provides information only and should not be construed as advice. It is without any warranty of any kind.