Survey indicates Americans progressively dependent on loans for groceries

(MENAFN) A growing number of Americans are turning to buy now, pay later (BNPL) services to purchase groceries, according to a recent survey by Lending Tree, an online lending marketplace. The trend is expected to continue, with analysts predicting that the situation will not improve in the near future due to ongoing inflation, high interest rates, and concerns about tariffs.

The survey, conducted in early April with 2,000 American consumers aged 18 to 70, found that approximately half of those surveyed were using BNPL services. The popularity of these short-term loans has surged in recent years, as they allow consumers to split payments into smaller installments. BNPL providers often charge no interest and do not consider credit scores, although late payments or multiple loans can lead to significant fees.

However, the survey revealed that 41% of BNPL users admitted to missing payments, an increase from 34% last year. Nearly a quarter of users reported having three or more active loans at once. Additionally, 62% of BNPL users mistakenly believe that using these loans improves their credit scores, with 26% unsure about the impact on their credit.

The survey also highlighted a nearly twofold increase in the use of BNPL loans for grocery purchases, with 25% of BNPL users using the service to buy food, up from just 14% last year. This trend has been especially prominent among Gen Z consumers, for whom groceries rank as the fourth most common BNPL purchase.

Matt Schulz, Lending Tree's chief consumer finance analyst, cautioned that while BNPL loans can be a useful tool when used correctly, they come with significant risks. He pointed out that economic factors like inflation and high interest rates are pushing more people to rely on loans to manage their budgets, and the situation is likely to worsen.

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