More People Are Using Buy Now, Pay Later for Everyday Expenses

Key Takeaways

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• More Americans are using Buy Now, Pay Later (BNPL) loans to cover everyday essentials like groceries, rent, and utilities, not just one-off splurges, as the cost of living keeps climbing.
• A July 2026 poll found nearly 4 in 10 respondents (and nearly 6 in 10 under age 45) use BNPL products, with users paying for groceries (46%), medical or dental care (42%), utility bills (39%), gasoline (38%), and rent or housing (33%).
• Grocery use is climbing fast: 29% of BNPL users said they had used the loans for groceries in September 2026, up from 14% two years earlier.
• Borrowing is at record levels. Americans took out $160 billion in BNPL loans in 2025, roughly double 2023, and 54% of borrowers said they couldn't make ends meet without them.
• "Interest-free" doesn't mean free. Monthly or membership fees, rescheduling charges, late fees, and overdraft costs add up, and borrowers who miss payments can end up paying the equivalent of a high-APR payday loan.
• Since BNPL loans are issued per transaction, frequent use means juggling multiple due dates and automatic debits, which makes it easy to take on more than you can manage.

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“A better life for my family and me would look like being able to buy a home, and being able to afford all the basic necessities, rent, utilities, car, food, healthcare – as well as being able to have enough left over to save for the future for retirement and vacations.” That’s what a 35-year-old respondent from Dearborn Heights, Michigan, said in a 2026 national survey where Americans shared their common aspirations for a better life.

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At first glance, these needs seem straightforward. But with higher gas prices, rising electricity bills, and a housing market that feels out of reach, many Americans are struggling to keep up with inflation.

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In the same survey, 90% of respondents said rising grocery and food costs are causing them financial distress, followed by housing, transportation, and healthcare.

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A separate July 2026 poll found that 95% of Americans believe the country is experiencing an affordability crisis.

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Another indicator is the rise of Buy Now, Pay Later (BNPL) loans. A July 2026 poll found that more users are relying on BNPL to pay for essentials such as rent, groceries, and utility bills.

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BNPL Loans Aren’t Just for One-Off Purchases Anymore

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BNPL loans launched in the early 2010s but gained traction in the early 2020s. They allow consumers to split the cost of larger purchases into smaller, interest-free payments that can be paid over a few weeks or months.

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Initially, customers used BNPL to make “stretch” purchases like designer clothing or gaming consoles since these loans could be approved on the spot at checkout with basic information and no credit check.

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But consumers are increasingly relying on these loans to cover necessities. The ease with which you can get and use these loans is what makes them attractive over other financing options.

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A July 2026 poll of 1,164 people found that nearly 4 in 10 respondents, and nearly 6 in 10 respondents under age 45, were using BNPL products.

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Amongst these users, a significant number report using these products to pay for essentials like groceries (46%), medical or dental care (42%), rental or other housing costs (33%), utility bills (39%), gasoline (38%), and childcare (22%).

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In another survey published in September 2026, 29% of BNPL users said they had used the products to pay for groceries, up from 14% two years ago.

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Another study found that in 2025, Americans borrowed $160 billion in BNPL loans, roughly double the amount compared to 2023. More than $96 billion in loans was issued without interest, according to the report. More than half of those borrowers (54%) also said that they wouldn't be able to make ends meet without the loans.

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Now, with the rising cost of living, BNPL products can be helpful if you can make the payment by the due date and avoid additional financing costs. But they come with their own hidden costs.

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BNPL Isn’t Always the Cheap Option It Sounds Like

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Whenever you take a BNPL loan, lenders usually charge a fixed monthly fee, plus a percentage of the loan amount. So a lot of them might advertise interest-free payments and no late fees, but you still pay a membership or monthly fee.

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If you’ve previously missed payments, lenders may decline applications for a new loan.

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Unlike a credit card or personal loan, BNPL loans are issued per transaction. So if you buy groceries weekly and avail a BNPL loan every week, you could quickly end up juggling multiple loans with different due dates. Most BNPL providers debit this amount from your bank directly, so you would have to ensure that you have sufficient balance when the requests hit your bank account. Otherwise, you might be charged potential overdraft or insufficient funds fees from your bank, or if your BNPL loan provider charges a late fee, then that too.

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Some lenders also charge a fee for rescheduling the due date or not setting your bank account as the default method of payment.

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Either way, you can end up paying overhead costs that add up quickly, even though BNPL loans are marketed as interest-free.

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A financial model found that borrowers who miss payments can end up paying amounts comparable to a high-APR payday loan.

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So while BNPL can seem interest-free and predictable in theory, it’s easy to take on more than you can handle, especially if you have limited experience with managing credit and payment schedules.

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But with millions of Americans struggling to get by, rising prices for essentials, and a stagnant job market and wages, many people have no option but to turn to short-term debt products like BNPL to cover their essential necessities.

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If you are struggling with cutting down or managing your expenses during these tough times, here are some guides that can help you:

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• Have Trouble Sticking to a Budget? Try These 7 Tips
• 5 Tried-and-True Budgeting Strategies
• 6 Tips for Mindful Consumption (Without Doom Spending)
• 5 Signs It Might Be Time for a Spending Freeze
• The Broke Environmentalist's Guide to Ethical Grocery Shopping
• How to Double Your EBT Dollars at the Farmers Market
• 15 Questions to Ask Yourself Before You Buy Something on Sale

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