“Buy now, pay later” services are rapidly becoming a financial lifeline for some families struggling with rising costs, but consumer finance experts warn the increasingly popular payment option can quickly turn into difficult-to-manage debt.
Services like Klarna, Afterpay and Affirm allow shoppers to split purchases into smaller installments, often with no interest if payments are made on time.
While the services were once mostly associated with clothing and electronics purchases, more consumers are now using them to cover everyday necessities such as groceries, utility bills and car repairs.
“Groceries are high. What used to be $100 is $400 at the grocery store, so it truly makes a difference,” said Lindsay Emerson, who uses buy now, pay later services out of necessity.
Emerson said she has used the payment plans for practical expenses, including internet bills, light bills and new tires.
“It helps you stay within your budget because these days money is tight,” Emerson said. “You don’t have a big lump sum you can just drop on your tires or an internet bill or your light bill.”
Convenience is key
According to a 2026 report from LendingTree, 29% of buy now, pay later users said they used the loans to buy groceries, which is more than double the percentage reported two years ago.
The report also found that nearly half of users, 47%, made a late payment in the past year, while more than half said they would not be able to make ends meet without the loans.
Matt Schulz, chief consumer finance analyst with LendingTree, said convenience is a major factor driving the growth of the services.
“Far and away, the biggest reason why people said that they like buy now, pay later loans was that they’re easy to use and easy to get,” Schulz said. “That convenience is a really big deal, and it’s actually a bigger factor than the fact that it’s interest-free.”
At first glance, buy now, pay later plans may appear safer than traditional credit cards because many advertise zero interest. But financial experts say the biggest risk is overspending, particularly when consumers are juggling multiple payment plans across several apps.
“It’s really easy to overspend and kind of go beyond what you can afford,” Schulz said.
Schulz said many consumers manage several buy now, pay later loans at once, making it harder to keep track of upcoming payments.
“Our survey showed that an awful lot of people who get buy now, pay later loans sometimes have three, four, five of them at a time,” he said. “That can be a real challenge to manage.”
Dangers of ‘stacking’
Experts say that “stacking” multiple buy now, pay later loans can make them riskier than credit cards because borrowers may not fully realize how much they owe until payments begin being withdrawn from their accounts week after week.
Still, supporters argue the loans can be a safer alternative to high-interest credit cards when used responsibly.
“If you use it wisely, it can be a really good thing because having a little bit of extra interest-free time on those big purchases can really make a difference when you’re on a tight budget or you’re living paycheck to paycheck,” Schulz said. “The issue comes when you use these things too often and spend too much.”
Financial experts recommend consumers treat buy now, pay later loans like any other form of debt by keeping track of payments, avoiding multiple simultaneous loans and ensuring purchases fit within their monthly budgets.
Some buy now, pay later lenders are also beginning to report loan activity more directly to credit bureaus, meaning missed payments could increasingly affect consumers’ credit scores in the future.