Dependence on Loans for Groceries Rises Among Americans
(MENAFN) Americans are becoming more dependent on buy now, pay later (BNPL) loans to purchase their groceries, based on a survey conducted by the online lending marketplace Lending Tree.
Analysts from the platform predict that this trend will continue, with no immediate improvement expected.
They attribute this growing reliance to factors such as inflation, high interest rates, and concerns surrounding tariffs.
The survey, which was carried out in early April, involved approximately 2,000 American consumers aged 18 to 70. Around half of the participants reported using BNPL services.
This short-term loan option has gained popularity over recent years because it allows shoppers to divide their purchases into smaller payments.
Additionally, many BNPL providers do not charge interest, and credit scores are not typically considered when approving loans.
However, failing to make payments on time or accumulating multiple loans can lead to significant fees.
About 41 percent of BNPL users confessed to missing payments, a rise from 34 percent the previous year.
Nearly a quarter of those who use BNPL services stated that they currently have three or more active loans at once.
Additionally, a large portion of BNPL users, approximately 62 percent, mistakenly believe that using these loans improves their credit score, whereas another 26 percent were uncertain about the effect on their credit.
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