‘Buy Now, Pay Later’ Expands Fast—Why It Should Worry Everyone

‘Buy Now, Pay Later’ Expands Fast—Why It Should Worry Everyone

What Is ‘Buy Now, Pay Later’ and Why It’s Growing So Quickly? ‘Buy Now, Pay Later’ is expanding fast, giving millions of Americans a tempting way to split purchases into smaller payments. From electronics to groceries, BNPL is everywhere. Its ease of use and instant approval make it popular, but financial experts warn that convenience masks serious risks. As more people rely on BNPL for essentials, the system may be pushing consumers toward unsustainable debt. Image Credits:sesame/ Getty Images Are Consumers Using BNPL for Everyday Necessities? Yes. Survey data shows 25% of users now finance groceries and basic items with BNPL. Originally designed for luxury purchases, BNPL is increasingly a lifeline for struggling households. Experts like Nigel Morris, co-founder of Capital One, emphasize that using BNPL for essentials is a red flag for broader economic stress. What Are the Risks of BNPL Default? Default rates on BNPL accounts are climbing. According to Lending Tree, 42% of users have miss…