Buy Now, Pay Later Use for Groceries Rises, Delinquencies Increase

A new survey from LendingTree reveals that an increasing number of Americans are utilizing buy now, pay later (BNPL) loans to purchase groceries. The study, released Friday, highlights a growing reliance on these services for everyday expenses. While BNPL offers convenience and flexibility, the survey also indicates a parallel rise in late payments on these grocery-related loans.

The LendingTree data suggests that more people are struggling to manage their BNPL debts, particularly when used for essential items like food. This trend could reflect broader economic pressures and the challenges many families face in affording basic necessities. Financial experts advise consumers to carefully consider their ability to repay BNPL loans before using them, and to prioritize budgeting and responsible spending habits to avoid accumulating debt.

"The increasing use of BNPL for groceries, coupled with rising delinquency rates, paints a concerning picture," said Matt Schulz, LendingTree's chief credit analyst. "It's crucial for consumers to be mindful of their spending and avoid relying on BNPL as a long-term solution for financial difficulties."