How BNPL Is Impacting Financial Wellness

Buy now, pay later (BNPL) tools have gone from niche to nearly normal. According to PYMNTS Intelligence, the U.S. BNPL market has grown to $175 billion — that’s 88x what it was just six years ago. While it’s still a relatively small slice of total consumer spending, the surge speaks volumes. BNPL isn’t just a checkout option anymore — it’s becoming a financial habit. And for a growing number of people, it’s also becoming a financial risk.

Suffice it to say: BNPL usage is up — and rising fast. A recent Bankrate survey found that 39% of U.S. adults have used at least one BNPL service, while Juniper Research estimates consumers had spent $334 billion via these platforms by the end of 2024. That’s a 13% jump from last year. But with more users comes more risk, the most prominent of which is “loan stacking,” as more than 62% of BNPL users are juggling multiple loans at once, and that overlap can quietly wreck financial wellness.

Unlike traditional credit, BNPL approvals rely on soft credit checks and bank data, not your full financial picture. That makes it easier to overextend without even realizing it. And since these loans often only require 25% upfront, they can feel deceptively manageable — until they aren’t.

Recent data shows that BNPL users tend to carry heavier debt loads across the board — including retail accounts, personal loans, and student loans — compared to non-users. According to the CFPB, 88% of BNPL borrowers also have a credit card (versus 73% of non-users), and they’re more than twice as likely to fall behind on payments by 30 days or more. That kind of stacking can damage your debt-to-income ratio, making it harder to qualify for loans down the line. Even worse, missed BNPL payments can now come with late fees and credit score dings, especially as more providers begin reporting delinquencies. BNPL distress is also skewed more heavily toward younger shoppers like Millennials and Gen Z, who make up the bulk of BNPL adoption, and are also the most likely to cite financial stress and burnout as reasons for putting off payments. That’s a risky combo for a product that’s marketed as convenient and low-pressure.

If you’re already feeling the weight of multiple BNPL loans, a few options exist. Some platforms offer short-term payment extensions or hardship programs. Consolidation via a personal loan or a 0% intro APR credit card could help you get ahead — if your credit score allows. But no matter the route, the best strategy is to slow down and take stock.

Bottom line: BNPL isn’t inherently bad — it’s just a loan, and like any other form of borrowing, it demands intention and discipline. It might be time to pause if you’re using it to float purchases you can’t truly afford. Plan your buys, read the fine print, and know what you’re signing up for. Because while it might say “pay later,” the bill always comes due.

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