Youve probably seen it at checkoutBuy Now, Pay Later (BNPL) options that let you split your purchase into smaller, more manageable payments. They’re easy to use and especially popular when shopping online. But financial experts are warning that the convenience might come at a cost.
Shakeria Hawkins takes a closer look at how this is changing the way Americans shop and the pitfalls you should watch out for. Is Buy Now, Pay Later leading more people into debt? Experts weigh in
Services like Klarna, Afterpay, and Affirm are becoming available for everythingfrom clothing and vacations to even everyday groceries. Theyre designed to make purchases more affordable up front, but some consumers say theyve ended up financially trapped.
I think its just a rip-off, said one Las Vegas resident. Id rather use a credit card or cash.
Carlos Lopez, another Las Vegas resident, says he tried one of the services but regrets it.
It didnt work out for me, Lopez said. The payments felt like they kept piling up.
Despite the concerns, many shoppersparticularly in their 20s and 30sare turning to BNPL as a way to stretch their budgets.
Theres a near-record amount of credit card debt. Interest rates are extremely high. Thats why many people are turning to Buy Now, Pay Later as an alternative, said Ted Rossman, a Senior Industry Analyst with Bankrate.
Rossman says these services are often marketed as a more predictable form of borrowing. Unlike traditional credit cards, BNPL payment plans are usually fixedso users know exactly what they owe and when. But that doesnt mean theyre risk-free.
There are a lot of variations, Rossman explained. Sometimes its four interest-free payments over six weeks. Sometimes the plans are longer. You really have to watch out for the interest ratesbecause sometimes theyre low, and sometimes theyre not.
Consumer advocates say one of the major concerns is that BNPL services may encourage shoppers to finance things they normally would have paid for upfront, like a fast food meal or grocery run.
In fact, Klarna recently partnered with DoorDash to offer BNPL for food delivery orders.
Its still debt, Rossman said. Debt for a fast food order may not be the best choice.
Rossman recommends using BNPL only for large, one-time purchaseslike a refrigerator or other appliancesand warns against using the services for multiple items or everyday expenses.
Klarna also reported a $99 million net loss in the first quarter of 2025, raising questions about whether consumers are falling behind on payments.
Buy Now, Pay Later has positioned itself as a kinder, gentler alternative to credit cards, Rossman said. But if youre not budgeting carefully, you can still end up in trouble.
While BNPL can be a helpful financial tool for some, experts say its important to use these services responsibly.
Avoid taking on too many installment plans at once, set payment reminders, and consider linking the payments to a debit card instead of a credit card.
