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More consumers are using buy now, pay later to cover essential household expenses, including groceries, rent and utility bills, and late payments among BNPL users have increased, according to recent reporting.
The combination points to a change in how the product is being used and the risks that follow. Essential spending changes the credit picture Buy now, pay later was built for discretionary purchases.
Split the cost of a laptop or a jacket across four payments and the downside is manageable. Groceries and rent do not work the same way. These are recurring, non-negotiable costs.
When a consumer finances them through an installment plan, it signals that cash is not covering basics, not that a buyer wants payment flexibility on a considered purchase. That distinction matters for lenders.
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