
“Buy now, pay later” loans were originally promoted as a way to help consumers afford small purchases, such as electronics and clothing. Now, financial firms are also pushing the loans as a means for people to cover essential expenses, such as rent, groceries, electricity bills and even medical costs.
Consumer advocates warn that using BNPL loans for daily necessities and other critical expenses is risky, noting that lenders sometimes obscure the potential costs of these short-term loans. A recent poll from Protect Borrowers, a nonprofit advocacy group that investigates financial abuses, found that many BNPL users report using the loans for essentials, including for rental or housing costs.


