Pay In 4 Trouble 7/30/26

Summary

A CNBC Your Money Minute segment reports that more Americans are using buy now, pay later services for necessities like groceries and rent, and a growing share are falling behind on payments. Data from a LendingTree survey shows a third of BNPL users went into debt for groceries, and nearly half have been late in the past year, with late fees potentially making loans resemble payday loans.

• 29% of BNPL users used loans for groceries, more than double the rate two years ago.
• 18% used BNPL for car repairs, 13% for rent, indicating use for essential needs.
• Nearly half of all U.S. adults have used a BNPL service.
• Almost half of current BNPL users say they have been late on a payment in the past year.
• Missing payments can lead to interest and financing fees up to 36% or effective APRs over 100% due to stacked late fees.
• The report warns that pay-in-four services can become like payday loans when borrowers fall behind.