Americans are now financing rent and groceries with short-term installment loans designed for shoes and gadgets.
Story Snapshot
- Sixteen percent of U.S. adults used buy now, pay later in 2025, per the Federal Reserve.
- Federal Reserve analysis estimates about $160 billion in buy-now, pay-later originations in 2025.
- Surveys show people now use these loans for rent, groceries, utilities, and medical bills.
- Lenders are rolling out rent-splitting products, taking the model beyond retail checkout.
Buy now, pay later moved from impulse buys to household bills
Federal Reserve researchers say buy now, pay later has grown fast since 2019, with 16 percent of adults using it in 2025. They describe it in simple terms: access the good or service now, spread the cost over time. That promise started at online checkout.
It now shows up when people pay for groceries, car repairs, and even rent. This shift marks buy now, pay later as mainstream consumer credit, not just a shopping button.
People are turning to BNPL loans to pay for rent, food and other necessities. Now, financial firms are also pushing the loans as a means for people to cover essential expenses. https://t.co/MnD940MaLD
— CBS News (@CBSNews) September 2, 2026
Federal Reserve staff estimate buy now, pay later providers originated close to $160 billion in 2025. That scale rivals some traditional credit lines. It also means repayment dates stack up like tiles. Miss one, and the rest do not move.
For households living paycheck to paycheck, timing matters more than the headline rate. Convenience turns risky when bills repeat every month but income wobbles.
Households report using it for rent, food, and medical costs
Survey snapshots show how this credit now covers essentials. One national survey reported 13 percent of users paid rent with buy now, pay later, and 18 percent used it for car repairs or maintenance.
Another survey, cited by network reporting, found that 23 percent used a buy-now, pay-later loan for medical, dental, or veterinary care, or for rent. The category buckets are broad, but the pattern is clear. People lean on installments to bridge needs, not only wants.
Firms are building to meet that demand. One major provider piloted a rent split into two installments through a partner platform. Another offers loans that split rent, utilities, phone, internet, and car payments into smaller parts.
These products move buy now, pay later into the world of recurring bills. That signals a business bet that repeat, must-pay expenses will drive growth, not just one-time retail splurges.
What the growth says about family budgets and lender aims
Families are trying to smooth cash flow without piling on revolving interest. Buy now, pay later promises simple, short schedules and low or no interest. That is the draw.
It aligns with household tactics: match payment dates to paydays, break a big bill into chunks, and avoid fees. When used as planned, it can help a tight month. When stacked with groceries, gas, and rent, it can make next month the tight one.
Lenders and merchants benefit from higher conversion rates and larger baskets. Federal Reserve research and industry studies link access to buy now, pay later with increased spending at the point of sale. That is the model. Bringing that engine to essentials raises stakes.
Households cannot skip rent the way they might skip a sweater. Providers know that. They market flexibility, but they also design for high on-time payment because the stakes press people to pay.
Policy, personal prudence, and a practical checklist
Regulators track the sector because of its reach into everyday life. The Federal Reserve frames buy now, pay later as a real part of the credit market, with strong growth in both loans and dollars. Media and advocates spotlight both relief and risk. That tension will not fade.
Essentials are not optional, and products that finance them need clear terms, fair fees, and honest marketing. That is baseline consumer protection, not politics.
People are turning to BNPL loans to pay for rent, food and other necessities. Now, financial firms are also pushing the loans as a means for people to cover essential expenses. https://t.co/MnD940MaLD
— CBS News (@CBSNews) September 2, 2026
Households can apply two rules that align with basic arithmetic. First, treat each plan like a loan. Count the installments against next month’s cash. If three plans are running, add them up; that is your true fixed cost. Second, use it as a bridge, not a habit.
If an expense repeats every month, look for a budget fix, not a new plan. Tools help when they keep you in control. They hurt when they hide the bill.
Sources:
cbsnews.com, cnbc.com, federalreserve.gov, consumerfinance.gov
