Research shows that more and more Americans are relying on groceries for “buy now, pay later” loans for food.
A surprising trend is created as low-income consumers also pay their bills late, according to an April survey by LendingTree.
A survey that reached 2,000 consumers between April 2nd and April 2nd between April 2nd, between April 2nd, between 18 and 79, shows that rising food prices meant that “buy now, buy now” users in April bought groceries on BNPL loans.
“A lot of people are struggling and are looking for ways to expand their budget,” said Matt Schultz, consumer finance analyst at Lending Tree. CNBC.
“Inflation remains a problem. Interest rates are still very high. There is a lot of uncertainty about tariffs and other economic issues, and many people are looking for ways to expand their budgets.”
What’s even more worrying is that consumers, including high-income households, are paying these loans late.
Approximately 41% of BNPL users said they paid in the last year, up from 34% a year ago.
Loans are considered to be an alternative to credit cards, allowing users to pay their bills in installments of small payments that involve late payments and interest fees.
Most people use this payment method to buy clothing and accessories, but groceries was the fourth largest category.
“I think that’s going to get worse, at least in the short term,” Schultz told CNBC. “I don’t know there are many reasons to hope these numbers get better in the short term.”
Even food delivery services, including Doordash, are cashing out consumers’ deferring payments.
Doordash, which offers both groceries and takeout, launched a partnership with the giant Klarna in March “buy now, pay later.”
