A growing number of Americans are using short-term “Buy Now, Pay Later” (BNPL) loans to purchase basic groceries — and Sacramento is feeling the strain.
According to a new LendingTree survey reported by CNBC, 25% of BNPL users are now financing their grocery bills, up from just 14% last year. Even more alarming: 41% of users reported missing at least one payment in the past year, suggesting families are turning to short-term credit just to get through the week — and still falling behind.
The data paints a sobering picture of economic pressure, and the Sacramento region is no exception.
Local indicators tell the story:
- Unemployment in Sacramento County hovers around 5.4%, slightly higher than the national average.
- Roughly 13% of residents live below the poverty line, with child poverty even higher.
- Food banks across the region report a 30% surge in demand compared to pre-pandemic levels.
- Foreclosure activity jumped 11% in early 2025, a sign that financial strain is extending beyond the checkout line.
From South Sacramento to Citrus Heights, families are increasingly relying on installment loans just to walk out of Walmart with basic necessities. While BNPL services were once marketed for electronics or holiday shopping, they’ve become a lifeline for many trying to stretch their budgets between paychecks.
“A lot of people are struggling and looking for ways to extend their budget,” said LendingTree’s Matt Schulz. “Inflation is still a problem. Interest rates are high. It all adds up.”
The trend raises deeper questions about the sustainability of household finances, especially as interest rates remain elevated and cost-of-living pressures mount.
Whether the reliance on short-term loans becomes the new normal — or a warning sign of something deeper — is a question policymakers, lenders, and families themselves will have to answer.
