The Blubber

An increasing number of Americans are relying on buy now, pay later (BNPL) services to cover the cost of everyday essentials—especially groceries—and more are falling behind on their payments, according to new data from LendingTree released Friday.

The survey highlights rising financial stress among consumers who are feeling the squeeze from ongoing inflation, steep borrowing costs, and broader economic uncertainty, including tariff-related pressures.

In a poll conducted April 2–3 of 2,000 adults between the ages of 18 and 79, nearly half said they had used BNPL services. Among those, one in four reported using the loans to pay for groceries—up significantly from 14% in 2024 and 21% in 2023.

At the same time, 41% of BNPL users said they had made a late payment in the past 12 months, a jump from 34% the year before.

Matt Schulz, chief credit analyst at LendingTree, said most late payments were just a few days overdue. Still, the trend points to deeper struggles.

“People are stretched thin and looking for ways to make their money last,” Schulz said. “We’re still seeing inflation weigh heavily. Interest rates remain elevated. Add to that the uncertainty around tariffs and other economic pressures, and it’s not surprising that people are turning to BNPL to bridge the gap.”

Though Schulz didn’t go so far as to label the findings as a sign of recession, he cautioned that the outlook isn’t bright in the short term.

“I think it’s going to get worse before it improves,” he said. “There’s not a lot of indication that these trends will reverse soon.”

BNPL loans, which let consumers divide purchases into smaller installments—often without interest—have grown in popularity as an alternative to traditional credit cards. But they’re not risk-free: late payments can come with hefty fees, and juggling multiple loans can quickly become overwhelming.

According to the survey, 60% of BNPL users reported carrying more than one loan at a time, and nearly a quarter said they were managing three or more simultaneously.

“These tools can be helpful, especially for someone trying to stretch their paycheck,” said Schulz. “But they also come with pitfalls. If you’re not careful, you can easily get in over your head.”

The report follows a recent Billboard article revealing that about 60% of general admission Coachella attendees used BNPL services to finance their tickets—raising concerns about how debt is increasingly being used to fund lifestyle spending.

Adding to the conversation, DoorDash recently announced it will accept BNPL payments through Klarna for food deliveries. The move sparked criticism and jokes online, with many suggesting Americans are now so financially strained they’re financing fast food like cheeseburgers and tacos.