The increasing use of "buy now, pay later" (BNPL) loans for groceries is raising eyebrows among financial experts. According to recent data, a significant portion of BNPL users are now employing these services to cover essential expenses, including food. This trend suggests that some consumers may be struggling to manage their finances and are relying on BNPL as a short-term solution.
BNPL services allow consumers to split purchases into smaller, more manageable installments, often without interest charges if payments are made on time. While BNPL can be a convenient option for larger purchases, experts caution against using it for everyday expenses like groceries.
"Using BNPL for groceries could indicate a deeper financial problem," says Sarah Miller, a certified financial planner. "It's important to assess your budget and explore alternative options before resorting to debt for basic necessities."
Alternatives to BNPL for groceries include creating a detailed budget, exploring options for food assistance programs, and seeking financial counseling. Experts recommend carefully evaluating the terms and conditions of BNPL loans, including any potential late fees or interest charges, before making a purchase.
Buy Now, Pay Later Use for Groceries on the Rise
More Americans are using "buy now, pay later" (BNPL) services to purchase everyday necessities like groceries. A recent study indicates that approximately 25% of BNPL users are applying these loans to cover expenses beyond discretionary purchases. Financial experts are expressing concern over this trend, suggesting it could signal financial strain for some households. They advise careful budgeting and consideration of alternative payment options.
Source: Read the original article at CBS