To cover grocery costs, some consumers are using a payment method often associated with impulse purchases: buy now, pay later. In a recent survey of 1,000 American consumers from marketing agency PartnerCentric, nearly a third of respondents reporting using BNPL for groceries.
BNPL can be an easy way to access financing, but relying too much on it for essentials could point to deeper financial problems, says Shawn DuBravac, a chartered financial analyst and president of the Avrio Institute, a corporate research firm.
“Using BNPL for consumables like groceries is a red flag; it suggests a household might not be appropriately managing cash flows,” says DuBravac. “That’s sustainable for a short time, but if inflation spikes or a recession hits, repayment capacity can deteriorate quickly. Defaults could rise, particularly among the most financially vulnerable.”
Here’s a look at how BNPL loans work and what you should do if you’re caught in a cycle of using this type of financing for essentials.
[Read: Best Low-Interest Personal Loans]
What BNPL Is and Why You Should Be Cautious About It
Buy now, pay later is a financing option many retailers offer at checkout online and in-store. Affirm, Klarna and Afterpay are among the best known.
To use BNPL, you select the option when checking out online, or you can download a provider’s app for in-person transactions. The provider typically performs a soft credit check, which won’t affect your score. If you’re approved, you may pay a portion of the purchase price at check out and pay off the rest in future installments.
Pay-in-four loans — where consumers put up to 25% of the purchase price and pay off the rest with three additional payments — charge no interest or fees, as long as borrowers pay off the advance in time. Those who don’t face late fees, and the company may report their missed payments to the credit bureaus.
BNPL companies also may offer longer-term financing options with annual percentage rates of up to 36%.
Phil Goldfeder, CEO of the American Fintech Council, says that BNPL is a transparent financial tool that, when used responsibly, can help consumers manage their cash flow and avoid high-interest and predatory alternatives. “The cost of groceries, like any other expense, can burden families, and additional financial tools like responsible BNPL (use) can help families manage their finances,” Goldfeder says.
However, issues arise if borrowers can’t make the payments or are tempted to spend outside their budgets. The average late fee for BNPL is $7, according to the Consumer Financial Protection Bureau, and the average BNPL loan is $135, financed over six weeks, according to CapitalOne Shopping. If someone finances $135, a single $7 late charge in a six-week period translates to an APR of about 44%. Another concern is that most BNPL providers require borrowers to use auto pay, and shortages can quickly turn into expensive overdrafts at their bank.
More than one-fifth in the PartnerCentric survey say they missed a BNPL payment. On top of that, 46% in the PartnerCentric survey say they are spending more than they would normally because they use BNPL, and 49% say they make more impulse purchases due to BNPL.
“Buy now, pay later can be useful — or a wolf in sheep’s clothing,” says Cathy Lesser Mansfield, a senior instructor in law at Case Western Reserve Law School. “For a purchaser who doesn’t have the means to pay for the item at purchase or soon thereafter, or for the purchaser who is not good at managing deadlines, BNPL can turn into very expensive credit.”
And it gets even more complex if consumers are juggling several BNPL loans at once. According to a CFPB report from early 2025, around 63% of BNPL borrowers had more than one loan during the year.
“It can be challenging for consumers to keep track of a series of individual BNPL transactions that may have different due dates and may be spread across multiple lenders,” says Austin Kilgore, an analyst for the Achieve Center for Consumer Insights, a think tank funded by digital personal finance corporation Achieve.
What to Do If You’re Relying on BNPL to Afford Groceries
“When payments start to feel uncomfortable, when you’re using BNPLs to pay for necessities like groceries, or when not having those debt payments would make a meaningful difference in your life, that’s when people should reach out for help,” says Kate Bulger, vice president for business development at nonprofit credit counseling firm Money Management International. “Don’t wait for BNPLs or any other kind of debt to turn into a crisis.”
If you’re consistently having trouble making ends meet:
— Reach out for assistance. Many turn to social services, charities, churches and food banks for help when facing food insecurity. Seek out a food bank in your area. Food Finder allows you to search food pantries and free food assistance programs by ZIP code. The U.S. Centers for Disease Control and Prevention also has a list of resources.
— Contact a nonprofit credit counselor for advice on budgeting. Many also offer debt management plans, or DMPs, which can make your payments more affordable and free up cash for necessities.
If you’re in a temporary bind, other solutions might be less costly or difficult to manage than BNPL:
— Explore payday alternative loans, or PALs, from credit unions. There’s no credit check, and you may get up to 12 months to repay what you borrow. Use this time to retool your finances, start an emergency fund and create a budget. Take note, though, that you must be a credit union member for at least one month to qualify.
— Some employers offer earned wage access through third parties. These allow borrowers to tap the wages they have already earned before payday, often with no fees or interest. This temporary fix can buy you time to find a better, more permanent solution to your cash flow issues.
“The fact that people may need to use BNPL just to pay for groceries should force us, as a society, to be asking bigger questions about household income security and risks of food insecurity. The cost of living has made it difficult, if not impossible, for many people to manage basic costs without turning to expensive loan products. This should concern us all,” says Mansfield.
[See: Best Personal Loans for Credit Card Refinance.]
Unstack Your Loans
If you’re already shouldering a number of BNPL loans, you have options.
— Apply for a personal loan to consolidate debt at a sensible interest rate with a single monthly payment.
— Consider a PAL from a credit union. PALs l loans are available in amounts of $200 to $1,000. If you need up to $2,000 and can repay it within 12 months, look into PALs ll loans. PAL APRs are capped at 28%.
— BNPL loans can also be included in DMPs if you have a number of stacked BNPLs or if you’ve fallen behind on one recently, Bulger says.
How to Manage BNPL Grocery Shopping
If you understand the risks but still want to use BNPLs for grocery shopping, here are some tips for keeping BNPL your pet lamb, not a wolf in sheep’s clothing:
— Restrict BNPLs to one at a time. Only apply for the next one when you’ve paid off the last.
— Make a household budget. Smartphone apps make it easy and help you control your spending.
— Plan your grocery shopping. Make a list, and stick to it.
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You’ve Been Using BNPL to Buy Groceries: There’s a Better Way originally appeared on usnews.com
