BNPL loans increasingly serve as a financial solution for Americans who need help paying for groceries while payment delays have increased according to LendingTree’s Friday report. Financial stress intensifies because of economic uncertainty together with rising inflation rates and high interest rates and tariff-related concerns.
The April 2-3 survey of 2,000 U.S. consumers (ages 18-79) revealed that half of them had used BNPL services. The percentage of people using BNPL to purchase groceries rose to 25% from 14% in 2024 and 21% in 2023. A significant 41% of participants revealed that they had delayed BNPL payments during the previous year compared to 34% in the past survey. Most late payments were delayed by a week or less, per LendingTree’s chief consumer finance analyst, Matt Schulz.
The chief consumer finance analyst Matt Schulz explained that people are forced to extend their budgets because of rising inflation combined with high interest rates and tariff-related uncertainties. The financial expert explained that BNPL functions as both an effective tool for controlling expenses and an unsafe financial choice when consumers fail to manage it properly. The survey findings showed that 60% of people who use BNPL services currently have several active loans while 23% of users maintain three or more loans at a time. Financial difficulties worsen when customers miss their payment deadlines because they face substantial fees.
Schulz refrained from calling this trend a recession indicator yet he forecasted that economic conditions will worsen. He predicted that business conditions will worsen before they start to improve. Many consumers choose BNPL services over credit cards because these plans break down payments into interest-free instalments. When customers combine loans or skip payments they risk creating financial problems that get out of control.
The current findings mirror the general economic tendencies. The Billboard reported that 60% of Coachella concertgoers bought festival tickets through BNPL services which led to discussions about debt dependence in lifestyles. People mocked DoorDash’s introduction of Klarna BNPL for food deliveries because it revealed difficulties in purchasing basic necessities. The economy has maintained its strength through a combination of employment stability and rising employee wages but now reveals initial signs of distress. Two major corporations Walmart and Delta Airlines announced reduced sales expectations because they observed declining customer demand.
The use of BNPL to bridge paychecks remains beneficial but poor management of these services poses significant financial dangers. Tread lightly.” Consumers must contend with an unpredictable financial situation because they increasingly turn to BNPL to buy essential goods including groceries.
