Growing number of Americans using BNPL loans to pay for groceries — and they’re often paying those bills late

When Americans start financing their weekly groceries the same way they might finance a new phone or a plane ticket, something is clearly off.

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Don’t miss Financing your food?The rise and risks of BNPL How to avoid the BNPL grocery trap What to read next

New data suggests that’s exactly what’s happening — and for many, it’s not going well.

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A fresh study from LendingTree reveals a troubling shift: More people are turning to buy now, pay later (BNPL) loans to pay for essentials like groceries, and many are falling behind on payments. The online survey, released in April 2025, polled 2,000 U.S. adults ages 18 to 79. It found that not only are Americans increasingly using these short-term installment loans for basic needs, but roughly 2 in 5 users have missed a payment.

“A lot of people are struggling and looking for ways to extend their budget,” Matt Schulz, Lending Tree’s chief consumer finance analyst, told NBC News. “Inflation is still a problem. Interest rates are still really high. There’s a lot of uncertainty around tariffs and other economic issues, and it’s all going to add up to a lot of people looking for ways to extend their budget however they can.”

Financing your food?

According to the survey, 25% of American BNPL users said they used the method to buy groceries in the past year. For Gen Z, that figure jumps to 33%. Across all categories, 41% said they made a late payment on a BNPL loan in the last year — a worrying sign that a short-term lifeline is becoming a long-term burden.

So, why is this happening? Inflation and high grocery prices have backed many Americans into a corner. Even as overall inflation has cooled, grocery costs remain stubbornly high. The price of basic staples — eggs, bread, milk — keeps climbing, stretching household budgets thinner by the month.

“For an awful lot of people, that’s going to mean leaning on buy now, pay later loans, for better or for worse,” Schulz said.

And while BNPL loans can offer short-term relief, they weren’t designed to be used repeatedly for perishable goods. Originally meant for discretionary spending on things like electronics or travel, BNPL is now being used to put food on the table — and that’s raising alarm bells about both spending habits and wider economic strain.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

The rise and risks of BNPL

Companies like Klarna, Afterpay and Affirm offer BNPL plans. The model is simple: Split a purchase into several payments over a few weeks, often with no interest if you pay on time. The option is easy and built into the checkout pages for everything from Target to DoorDash.

That frictionless convenience is exactly what makes BNPL so appealing — and so risky.

Only recently have BNPL lenders been required to follow some of the same rules as credit card companies, including clearer disclosures and the right to dispute charges. For many purchases, lenders use soft credit pulls or none at all. Users can also open multiple loans across different platforms, often without realizing how quickly the debt adds up.

LendingTree’s study found 60% of users had multiple BNPL loans open at once. While each payment might seem small — $25 here, $15 there — the total impact can wreck a budget, especially when combined with rent, utilities and gas.

But the danger is clear: using debt to buy items you’ll consume in days, then repaying that debt over weeks or months, creates a disconnect between cost and consequence. And if you miss a payment? You could face late fees, overdraft charges and even hits to your credit score.

How to avoid the BNPL grocery trap

For Americans feeling squeezed, BNPL can seem like a lifeline. But it’s important to use these services strategically — not impulsively.

If you’re thinking about using BNPL to pay for groceries, look into why your budget doesn’t cover the essentials. Are you overspending in other areas? Could you cut back on subscriptions or dining out?

If there’s truly no room to maneuver and BNPL is your only option for putting food on the table, treat it like a serious financial obligation — not just a few taps at checkout. Stick to one BNPL provider to better track your payments. Set reminders to avoid late fees. And don’t use BNPL on multiple purchases in a single pay period. It’s not free money — it’s a debt, and it needs to be managed.

If you’re in a tough spot, explore grocery assistance programs like SNAP or visit local food banks. If your income allows but you’re tempted to lean on BNPL anyway, consider building a small buffer in a high-yield savings account. Budgeting apps can also help you flag overspending and keep you on track.