More American consumers are turning to "buy now, pay later" (BNPL) loans for everyday expenses, particularly groceries, as food prices continue to soar. Tia Hodge, a 29-year-old mother from Georgia, exemplifies this trend by using Klarna's BNPL service to manage her grocery bills. With a recent grocery haul costing nearly $400, she opted to split the payment into four interest-free installments, allowing her to budget more effectively amidst rising living costs. This financial strategy is becoming increasingly popular, with a recent LendingTree survey revealing that nearly 25% of BNPL users are financing groceries, a significant increase from 14% the previous year. The trend extends beyond groceries, with more consumers utilizing BNPL loans to cover recurring monthly expenses like utilities and streaming services. As inflation continues to impact household budgets, these short-term loans provide a flexible option for managing finances, but they also raise questions about long-term financial health and dependency on credit.
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