As the cost of living puts pressure on household budgets, more consumers are turning to buy now, pay later services to cover everyday expenses, including groceries. While the apps offer a way to spread out payments, financial experts warn that relying on them for necessities can create additional financial strain.
“What I’m seeing is this normalization of financing everyday life,” Rasher said. “We’re going to start to see buy now, pay later become increasingly ordinary for everyday expenses, not just clothes, vacations or technology.”
Dr. Erica Rasher, who holds a Ph.D. in personal financial planning and is a certified financial therapist, said consumers should recognize that buy now, pay later services are a form of debt, even when payments are divided into smaller installments.
“It used to be able to help people buy the things they wanted, but now it’s being used to bridge that gap for the things they need. I think we have to be careful with that narrative. Financing a trip versus financing groceries are two very different financial stories,” said Dr. Erica Rasher.
Services such as Klarna, Affirm and Afterpay allow consumers to split purchases into installments. Although smaller payments can make purchases feel more affordable, the total cost remains the same.
Rasher also explained how managing several payments plans at once can also make it harder to keep track of how much money is already committed.
“That’s how a temporary cash flow fix becomes a revolving cycle. What it does is it shrinks the price psychologically, but you’re still paying the original amount,” she said. “You can still be paying for last week’s groceries when you’re buying new ones.”
The shift from financing discretionary purchases to covering basic necessities raises additional concerns about affordability.
“When you have more than one, it’s not just one little payment. It’s potentially six little payments that are hitting your checking account for six different purchases on six different days. It’s a huge stack of issues,” she said.
HOW TO AVOID THE HIDDEN COSTS:
Rasher recommends that consumers pause before using a buy now, pay later service and assess whether the purchase fits their budget without financing.
One question to ask is: Could I afford to pay for this today without using buy now, pay later?
Consumers should also take inventory of existing installment plans and upcoming bills before committing to another payment.
“If you’re already stacking payments across Klarna and Affirm and Afterpay, that is a huge red flag that tells you to maybe pump the brakes a little bit,” Rasher said.
Tracking payment amounts and due dates can help consumers see how much of their income is already committed. Rather than evaluating each installment separately, consumers should consider the combined cost of all outstanding payments and whether enough money will remain for essentials such as housing, utilities, food and transportation.
WHEN BUY NOW, PAY LATER SIGNALS A BIGGER PROBLEM:
For consumers who regularly rely on installment payments to afford groceries or other necessities, Rasher said the priority should be understanding the underlying financial pressure rather than feeling ashamed.
“I don’t want you to shame yourself, but rather get curious,” she said.
She encouraged consumers to review their income, expenses, debt and cash flow timing to identify where their budgets may be falling short. That assessment can help determine whether the challenge is a temporary gap between paychecks or a more persistent mismatch between income and expenses.
If the problem is ongoing, consumers can explore additional resources, such as nonprofit financial counseling, food assistance programs and other community support, to help cover immediate needs without accumulating additional debt.
The goal is to find a sustainable way to manage expenses instead of repeatedly relying on new installment plans to cover previous shortfalls.
“Buy now, pay later can ultimately solve a timing issue, but not an affordability issue,” Rasher said.
Understanding that distinction can help consumers make more informed borrowing decisions, recognize when payment plans are becoming difficult to manage and seek support before short-term relief creates a longer-term financial burden.
