Americans used buy now, pay later (BNPL) plans to spend more than $160 billion last year, according to research from Federal Reserve economists. Experts note that the use of BNPL services is increasingly extending beyond discretionary purchases to everyday expenses such as groceries, bills, transportation, and in some cases, rent.

Pay-in-four plans, which allow consumers to spread payments for purchases over four installments within six weeks, accounted for roughly half of the BNPL spending in 2025. This segment has grown nearly 80% since 2023. The remaining usage involved either longer- or shorter-term financing options.

Financial experts attribute the rising reliance on BNPL to ongoing economic pressures. Sara Rathner, a credit card expert at NerdWallet, described a challenging job market and economic environment where the cost of daily necessities is rising faster than incomes. Mark Elliott, chief customer officer at Happen Bank, a financial services firm, observed that BNPL has shifted from a convenience tool to a reflection of cash flow difficulties for many consumers.

Individuals like Elizabeth Brown, 26, from Columbia, South Carolina, illustrate this trend. Brown, who works as a clinical service member at an optical store, first turned to BNPL six years ago when she had difficulty covering basic expenses on her salary. She continues to use it now to manage purchases like groceries and furniture. “I don’t necessarily feel shameful for using it because at the end it’s very beneficial to me at this point of my life,” Brown said.

Similarly, Jordan Williams, 28, a lecturer and content creator from Greensboro, North Carolina, initially used BNPL for concert tickets but began relying on it for groceries following financial hardship after childbirth. Williams expressed frustration at the need to use credit to cover essentials she believes should be affordable. Over time, peer discussions helped reduce her feelings of embarrassment about accruing debt through BNPL programs.

Experts caution consumers to carefully review the terms of BNPL agreements, as not all plans carry the same conditions. Ed deHaan, a professor at Stanford Graduate School of Business, warned that some BNPL products include upfront fees or penalties for missed payments, which can lead to additional costs or service restrictions.

Credit reporting practices related to BNPL loans are evolving. While these loans traditionally did not affect credit scores, some BNPL providers, including Affirm and Klarna, now report lending activity to major credit bureaus Equifax, Experian, and TransUnion. However, others, such as Afterpay, do not report. Missing payments can negatively impact credit scores, highlighting the importance of timely repayment.

Financial advisers recommend only borrowing amounts consumers are confident they can repay and avoiding the accumulation of multiple BNPL loans, which can become difficult to track and manage. Carla Sanchez-Adams, senior attorney at the National Consumer Law Center, noted that stacking loans across different companies can lead to unmanageable debt.

For those struggling with BNPL or other debt, experts suggest exploring additional community and government resources such as food assistance programs or hardship aid, as well as seeking help from nonprofit credit counseling agencies. Organizations like the National Foundation for Credit Counseling and the Financial Counseling Association of America offer certified counseling services to help individuals regain financial stability.

Rathner emphasized the importance of addressing financial stress as part of overall well-being, encouraging consumers to seek support to better manage debts and rebuild control over their finances.