Buy Now Pay Later Use Tops 50 Percent of Americans as Experts Warn of Debt Risks

More than half of Americans now use buy now, pay later services, according to data published by Experian in June 2026. The figure marks a significant increase from prior years and reflects how deeply these short-term financing tools have embedded themselves in everyday consumer spending.

Buy now, pay later services allow shoppers to split purchases into installments, often with no interest if paid on time. Companies like Affirm, Klarna, and Afterpay have expanded rapidly, and major retailers now offer these options at checkout both online and in stores.

Adoption is highest among lower-income households. Experian data shows that consumers earning less than $50,000 per year are more likely to use BNPL than those in higher income brackets. Experts say this pattern suggests many users are turning to these services out of financial necessity rather than convenience.

Financial advisors warn that BNPL carries real risks. Late fees can accumulate quickly, and some services report missed payments to credit bureaus, which can damage credit scores. Consumers who use multiple BNPL plans simultaneously can find themselves overextended without realizing it.

Total credit card balances fell by $25 billion to $1.25 trillion in the first quarter of 2026, a seasonal dip following holiday spending. But balances remain $70 billion higher than the same period a year earlier, and average annual percentage rates remain near record highs.

Consumer advocates said the combination of high credit card rates and growing BNPL use points to widespread financial stress among American households. They called for clearer disclosure requirements for BNPL products and stronger consumer protections.