Feeding the Trap: How Buy Now, Pay Later Is Quietly Creating the Next Debt Crisis

By James Farias

Founder & CEO, Relief Strategies, LLC

🌪️ A Quiet Crisis in the Checkout Line

When people start financing groceries, we’re no longer talking about convenience, we’re talking about survival.

In fact, 25% of Americans now report using Buy Now, Pay Later (BNPL) services to afford groceries, according to a LendingTree survey reported by Fortune (Fortune, 2024). Even more concerning, BNPL use for groceries has nearly doubled, jumping from 14% to 25% year-over-year (Yahoo Finance, 2024).

The data is striking. But what’s more alarming is what it represents: a systemic shift from using credit to purchase “want-based” items to using it for core survival.

And that shift is no accident. It’s a signal. A warning.

⏳ A Quick History: From Fintech Darling to Household Crutch

BNPL platforms like Klarna, Afterpay, and Affirm launched in the mid-to-late 2010s, championed as consumer-friendly alternatives to credit cards. The appeal was simple: 0% interest, no hard credit checks, and the ability to break purchases into four equal payments. For a time, BNPL was synonymous with big-ticket retail: laptops, designer shoes, holiday gifts, and fitness gear.

Major retailers embraced the trend, and so did consumers, especially Millennials and Gen Z, many of whom distrusted traditional banks after the 2008 crisis. In 2019 and 2020, BNPL use exploded, with platforms reporting exponential growth and billions in transactions.

But a quiet pivot began during the pandemic.

As stimulus checks dried up and inflation hit record highs, consumers increasingly turned to BNPL not for splurges, but for staples. In 2022, groceries and gas entered the top five categories of BNPL use. By 2024, companies like Zip and Klarna were actively advertising their services at grocery checkouts.

📉 The Economic Slide: From Optional to Essential

The shift from luxury to necessity didn’t happen in a vacuum. A perfect storm has pushed American households toward financial fragility:

Inflation pressure: Food, gas, and housing prices surged post-pandemic, outpacing wage growth. Essentials became unaffordable for many.
Stagnant wages: Real income for middle- and lower-income earners has barely budged, forcing families to bridge the gap with credit.
Disappearing safety nets: Pandemic-era relief, such as stimulus payments, expanded unemployment, and student loan forbearance vanished by 2023.
Rising interest rates: Traditional credit card APRs crossed 20%, making revolving credit far riskier than before.

Consumers didn’t shift to BNPL out of financial literacy or convenience. They did it out of necessity.

⚠️ The Trap Beneath the Surface

While BNPL can appear harmless on the surface, especially with its 0% interest tags, it creates a dangerous feedback loop:

Phantom affordability: It feels like cash. It isn’t.
Debt stacking: Multiple micro-payments become overwhelming when income dips.
No visibility: Most BNPL debts didn’t show up on credit reports, allowing users to accumulate debt without lenders or even themselves having a full view of their obligations.
Psychological exhaustion: The shame of needing credit to eat keeps many people silent.

This lack of transparency led directly to increased missed payments. According to the Consumer Financial Protection Bureau (CFPB), 63% of BNPL borrowers had multiple simultaneous loans at some point during the year, with 33% borrowing across multiple BNPL firms (CFPB, 2025). Although traditional credit card delinquencies hover around 10%, BNPL delinquency rates, while individually lower, are misleading because stacked BNPL obligations are fragmented across platforms and often invisible to credit systems.

This “phantom debt” effect left many consumers vulnerable.

And it’s getting worse: according to LendingTree, 41% of BNPL users missed at least one payment last year, a 20.6% increase from the 34% reported the year prior (LendingTree, 2025). Missed payments were even more common among those using BNPL for essentials like groceries and gas.

The cycle is clear: More use → More essentials charged → More missed payments.

Ollie the ostrich mascot delivering an encouraging quote in a speech bubble: "If you're juggling bills in silence, it doesn’t mean you’re weak. It means the system isn’t built for your reality. But we can build a plan that is."

🔬 The Next Evolution: Credit Bureau Reporting

BNPL has operated in a regulatory gray area for years, but that’s beginning to change. As of April 2025, Affirm is now sending its loan data to Experian, with plans to extend reporting to TransUnion in May (Axios, 2025).

This marks a shift from invisible debt to reportable, score-impacting debt.

The goal is transparency, but for many consumers already struggling, this change could mean sudden credit score declines, reduced access to traditional credit, and further financial exclusion.

What happens when missed payments on grocery purchases start affecting credit scores?

We’re about to find out.

🗳️ The Forecast: From Survival to Collapse

Federal Reserve research has already established a link between the use of credit for basic needs and future financial instability (Richmond Fed, 2025). The more consumers rely on debt to survive, the more likely they are to:

Default on other obligations
Lose access to traditional credit
Experience compounding mental health impacts

BNPL may be marketed as modern and flexible, but for many, it’s become a backdoor into long-term financial damage.

This isn’t about judgment. It’s about reality. And the sooner we face it, the better.

📊 What to Do If This Feels Familiar

If you’ve found yourself leaning on BNPL or credit cards just to cover the basics, not for extras, but for groceries, gas, or bills, you’re not alone. But it’s a quiet signal that something deeper might need to shift.

When minimum payments no longer move the needle…
When debt becomes the way you stay afloat instead of a tool to move forward…
It’s time to explore what real relief could look like.

That might mean reviewing your budget, talking to a credit counselor, or when things have spiraled too far, considering debt settlement. These aren’t magic fixes. But for many, they’re turning points. They mark the moment you stop surviving and start reclaiming control.

You don’t need to be in crisis to ask questions.
Sometimes just understanding your options is the first step toward stability.

Want personalized help navigating your student loans or overall debt relief strategy?

Contact Relief Strategies for a free consultation and take the first step toward clarity and control.

Best regards,

James Farias

CEO of Relief Strategies, LLC

About the Author

James Farias is the CEO of Relief Strategies, LLC, a leading firm dedicated to helping individuals achieve financial freedom through effective debt relief solutions. With over 30 years of business management experience and a passion for empowering others, James has guided countless clients through their journey to reduce debt and regain control of their finances.

Recognizing how quickly debt can overwhelm even the most financially disciplined individuals, James focuses on strategies that reduce monthly payments, minimize financial stress, and unlock new opportunities. His mission is to help clients move past financial challenges and embrace a brighter future.

Connect with James on LinkedIn or visit Relief Strategies to learn more about how he and his team can assist you on your journey to financial freedom.