Buy-Now-Pay-Later services surge as cash-strapped shoppers use them for groceries and gas

Cash-poor consumers are increasingly using buy-now-pay-later products to afford basic necessities, a trend highlighted by a LendingTree study showing 29% of users employ services like Klarna and Affirm for groceries, and 54% claim they would struggle without them. Federal Reserve data indicates that 20% of Americans have used BNPL to pay for food at large chains or delivery services. The most common BNPL purchases now include groceries, ranking third after clothing and electronics, often through interest-free "pay in four" plans.

Debt attorney Ashley Morgan cautions that many treat these installments as non-debt, leading to loan stacking, with one in four users holding three or more active BNPL loans. Rising default rates and hidden fees are emerging concerns, as some providers charge interest up to 35.99% on longer-term plans, and late-fee averages reach $7-8 per payment. Industry observers advise shoppers to read terms carefully and avoid assuming all BNPL options are interest-free.