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[BUSINESS] · United States · 11 sources

started · updated

Part of situation: BNPL growth, essential spending, and merchant risks (16 clusters)

BNPL loan usage rises for essential expenses like rent and groceries

buy now pay later BNPL loans consumer debt rent payments financial distress

Data indicates a growing trend of consumers using 'buy now, pay later' (BNPL) services to cover essential living expenses rather than discretionary purchases. Approximately 30% of BNPL users reported using the service for groceries, representing a 14% increase from the previous year. Additionally, 23% of respondents have utilized these loans for medical, dental, or veterinary services.

In response to this shift, companies like Affirm have launched pilot programs allowing users to pay rent via BNPL. While these specific loans may be interest-free, they often require monthly membership fees ranging from $35 to $50. Analysts warn that while these services can provide temporary relief, they may also lead to financial distress due to potential late fees and other costs.

According to Federal Reserve economists, Americans borrowed $160 billion in BNPL loans in 2025, which is double the amount from two years prior. Despite the growth in usage, late payments are also rising; a report from LendingTree found that nearly half of BNPL users reported making late payments within the last year.

Entities

Affirm · Federal Reserve · Klarna · LendingTree · Zip

Claims

What the coverage asserts, and how many sources carry each claim.

Sources

When People Have To Use Affirm To Pay Rent, Things Are Bad [themorninghustle.com]
When People Have To Use Affirm To Pay Rent, Things Are Bad [classixphilly.com]
When People Have To Use Affirm To Pay Rent, Things Are Bad [mycolumbusmagic.com]
When People Have To Use Affirm To Pay Rent, Things Are Bad [kissrichmond.com]
When People Have To Use Affirm To Pay Rent, Things Are Bad [praisehouston.com]
When People Have To Use Affirm To Pay Rent, Things Are Bad [hotspotatl.com]
When People Have To Use Affirm To Pay Rent, Things Are Bad [newstalkcleveland.com]
Americans turning to "buy now, pay later" loans for rent, food, and other necessities (Video) [www.socialnews.xyz]
When People Have To Use Affirm To Pay Rent, Things Are Bad [thebuzzcincy.com]
When People Have To Use Affirm To Pay Rent, Things Are Bad [woldcnews.com]
When People Have To Use Affirm To Pay Rent, Things Are Bad [wzakcleveland.com]