Americans Use $160 Billion in BNPL Loans for Essentials as Inflation Squeezes Budgets
Updated
Updated · CBS New York · Sep 2
Americans Use $160 Billion in BNPL Loans for Essentials as Inflation Squeezes Budgets
1 articles · Updated · CBS New York · Sep 2
Summary
Nearly 30% of BNPL users now use the loans for groceries, up from 14% two years ago, while 23% say they have used them for rent or medical, dental and veterinary bills.
High inflation and rising living costs are driving that shift, with 54% of borrowers telling LendingTree they would not be able to make ends meet without BNPL loans.
BNPL borrowing reached $160 billion in 2025—about double the level two years earlier—with more than $96 billion issued interest-free, helping fuel wider use beyond clothing and electronics.
Affirm and Flex are pushing installment products for rent and utility payments, but consumer advocates warn membership, processing, late and overdraft fees can turn short-term flexibility into deeper debt.
Advocates say the growing use of BNPL for necessities is less a sign of convenience than of worsening affordability, as more households struggle to pay rent and utilities on time.
Are payment-splitting apps exploiting desperate renters, or are they providing a vital financial lifeline that traditional banking systems have completely abandoned?
With billions in unreported phantom debt masking the true cost of living, could this everyday payment loophole trigger the next financial crisis?