SAN DIEGO (KGTV) — New data released by LendingTree shows 41 percent of "buy now, pay later" users have made at least one late payment in the past year.
That is up from 34 percent previously.
This comes as 91.5 million Americans used the buy now, pay later option in 2025.
Tara Alderete with Money Management International, a non-profit focused on debt management, says consumers need to be careful of these late payments as they can result in a hit to a credit score and often times late fees.
"If you miss a payment, then late fees can apply. And the thing about the late fees is that they're different based on the buy now pay later service and the amount you owe so those fees fluctuate," Alderete said.
"Before people used the buy now pay later payment plan to pay for expensive items or things they want to splurge on. But now it's become a form of payment used to pay for day-to-day items," Alderete said.
Consumer Jason Jones says the accessibility and manageable payment options with no interest fees can be dangerous.
"I've noticed that it is everywhere now. I see it on Amazon, I see it on Etsy, I see it all over the place," Jones said.
Jones used the option to pay for an item he could not pay for upfront.
"It was really simple to apply. It's basically instant approval. There's no background check. I got a choice of making 4, 6, 12 payments over the course of time," Jones said.
"I bought some jewelry for my fiance at the time, and you know I didn't have the money for it but I really wanted to impress her so it was something that I can manage," Jones said.
While Jones was able to pay his item off in a few months, he has gotten help from Money Management International to get his debt under control.
He says while the option of buy now, pay later is convenient, he still focuses on budgeting his money and making sure the funds are readily available for his day-to-day purchases.
"I'm very careful with what I used it for. Like I wouldn't use it for groceries, or I wouldn't use it for something that I don't think I would use it got something that I should be able to save up a little bit for," Jones said.
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