Americans Now Buying Groceries With Debt: A Bad Sign for the Economy

Debt for Dinner: Americans Finance Groceries to Survive

In the latest signal that America’s financial foundation is rotting beneath our feet, a new LendingTree survey shows an alarming rise in the use of "Buy Now, Pay Later" (BNPL) loans—this time, for groceries. Let that sink in. Americans aren't just using BNPL for splurges or luxuries anymore. They're using it to feed themselves.

Matt Schulz, LendingTree’s chief consumer analyst, sums it up bluntly: "A lot of people are struggling and looking for ways to extend their budget.” With inflation still ripping through household finances, interest rates hammering the cost of borrowing, and new tariffs clouding the economic outlook, millions are desperately patching holes in a sinking ship.

Late Payments Soar—And the Real Numbers Are Probably Worse

The survey's findings are a red flag for anyone paying attention. 41% of BNPL users admitted they were late on payments this past year, a jump from 34% the year before. And don’t be fooled by those who claim they were "only" a week late—these are self-reported numbers, softened by human nature. The real figures are likely even worse.

From Fashion to Food: Debt is Now a Daily Necessity

When asked what they’re buying with BNPL, the top categories were clothing, electronics, and increasingly—groceries. 25% of users have now financed groceries this way, up from 14% a year ago. Among Gen Z users, one-third have resorted to debt just to buy food. Fast food and takeout purchases also saw an uptick, with 16% using BNPL to keep the Uber Eats deliveries flowing.

This comes right on the heels of March’s news that DoorDash inked a deal with BNPL giant Klarna, enabling cash-strapped Americans to finance food delivery in four "easy" installments. They even pitch it as aligning payments with your paycheck schedule—as if living paycheck to paycheck is some kind of new normal to celebrate.

Regret Rising: BNPL Users Wake Up to the Trap

It’s no wonder that nearly half of BNPL users regret using these services, according to the survey. Among Gen Z, the regret rate soars to 64%, with nearly a quarter regretting multiple purchases. Yet the trap keeps springing: 62% of users falsely believe that paying BNPL loans on time will improve their credit scores. (Spoiler: it doesn’t. At least, not yet.) LendingTree predicts it’s only a matter of time before FICO and VantageScore begin baking BNPL data into your credit rating—a ticking time bomb for millions.

A Nation Hooked on Easy Money: The BNPL Addiction Spreads

A few other grim numbers:

• Nearly half of Americans have used a BNPL loan.
• 11% have used BNPL six or more times.
• 23% currently have three or more BNPL loans open at once.
• 64% of Gen Z have used BNPL compared to just 29% of Boomers.
• Men are slightly more likely than women to use BNPL (53% vs. 46%).

Add this data point to the towering pile of evidence: The American consumer is breaking under the weight of bad policies, bad money, and bad leadership.

Act Before It's Too Late: Protect Your Financial Future

If you don’t want to end up at the mercy of debt traps and collapsing institutions, it’s time to take control of your financial destiny.
Download Bill Brocius’ free guide, "7 Steps to Protect Your Account From Bank Failure".
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And if you haven’t yet, grab a copy of Bill's prophetic book, "End of Banking As You Know It."

Tomorrow’s headlines are written today. Prepare accordingly.