Post by Benzinga

Buy now, pay later is starting to look less like a convenience tool and more like a warning sign. A new LendingTree report found that 47% of BNPL users paid late on at least one loan in the past year, up from 41% last year and 34% in 2024. The bigger issue is how people are using it. More than half of users say they would struggle to make ends meet without BNPL, and nearly 30% have used it for groceries. Among Gen Z, that number climbs to 38%, showing it is increasingly being used for essentials, not just discretionary spending. This also is not just occasional borrowing. One in four users say they have three or more BNPL loans open at the same time, which suggests these payments are stacking and quietly eating into future cash flow. That is what makes BNPL easy to miss. It often does not get discussed the same way as credit card debt or personal loans, and it may not show up clearly in the usual places, but it still creates real obligations that compete for the same monthly dollars. There is also a behavioral risk. Most users say they choose BNPL because it is easy and convenient, not because it saves them money. Nearly 70% say it has led them to overspend, and more than half say they regret using it at least to some extent. The broader takeaway is that BNPL is becoming an early signal of financial strain across income levels and age groups. It is less about the product itself and more about what its growing use says about cash flow pressure, spending habits, and how many households are quietly relying on short-term financing to stay afloat.