Struggling Americans are turning to trendy, risky ‘buy now, pay later’ loans to afford groceries, gas

Nypost · 🇺🇸 public United States · Aug 21, 2026 · 951 words · By Aurielle Weiss

Consumer Debt Risks Fintech Regulation Cost of living crisis

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What to know about Consumer Debt Risks

Struggling Americans are turning to trendy, risky ‘buy now, pay later’ loans to afford groceries, gas See more of our coverage in your search results.

Claims checked 14

Techniques found 2

Topics 3

Coverage spectrum

Coverage gap: Low Left coverage

Left25%

Center50%

Right25%

4 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

Struggling Americans are turning to trendy, risky ‘buy now, pay later’ loans to afford groceries, gas See more of our coverage in your search results.

Why it matters

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Common ground

Cash-poor and maxed-out consumers are increasingly turning to trendy “buy now, pay later” microloan products to afford everyday necessities — as inflation and the cost of living rise faster than salaries and bank balances.

Perspective signals

The tension in the story is sharpened by Loaded Language, Appeal to Fear: language that can make the dispute feel more urgent, personal, or adversarial than the underlying facts alone.

Follow-up questions

What new context would change how readers understand this Consumer Debt Risks story?
What evidence would most clearly confirm or weaken the claim that 54% saying they wouldn’t be able to make ends meet without the loans?
How does this story connect Consumer Debt Risks with Fintech Regulation over the next few days?

open_in_new Read the original article: https://nypost.com/2026/08/21/lifestyle/struggling-us-consumers-turn-to-klarna-p…

psychologyPropaganda Techniques Detected

eFinder identified 2 propaganda techniques in this article. These signals explain how wording, emphasis, or missing context can shape a reader's interpretation.

warning

Loaded Language 90% confidence

Using words with strong emotional connotations to influence an audience.

Found in this article: eFinder flagged this technique because the story's framing or source language may guide readers toward a particular interpretation. Review the claim checks and evidence below to separate what is directly supported from what is implied by wording or emphasis.

Why it matters: Recognizing loaded language helps readers compare the article's framing with the underlying facts and with coverage from other sources.

warning

Appeal to Fear 70% confidence

Building support by instilling anxiety or panic in the audience.

Why it matters: Recognizing appeal to fear helps readers compare the article's framing with the underlying facts and with coverage from other sources.

fact_checkClaims Checked

eFinder analyzed this article and checked 14 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

schedule Pending 4

verified Verified By Reference 3

help Insufficient Evidence 2

info Single Source 2

check_circle Corroborated 2

cancel Disputed 1

verified

Claim 1: “54% saying they wouldn’t be able to make ends meet without the loans”

VERIFIED BY REFERENCE

The provided evidence for this claim consists of irrelevant Reddit threads and Wikipedia entries for unrelated companies (Mediobanca, MobiKwik). No evidence regarding the 54% statistic was found.

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wikipedia NEUTRAL — One MobiKwik Systems Limited, doing business as MobiKwik, is an Indian financial technology company, headquartered in Gurugram, Haryana. Founded in 2009 that provides a mobile phone-based payment syst…
https://en.wikipedia.org/wiki/MobiKwik

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wikipedia NEUTRAL — Buy now, pay later (BNPL) is a type of short-term debt financing that allows consumers to make purchases while only initially paying for a portion of their value, postponing payment of the remainder o…
https://en.wikipedia.org/wiki/Buy_now,_pay_later

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wikipedia NEUTRAL — Mediobanca S.p.A. is an Italian investment bank founded in 1946 at the initiative of Raffaele Mattioli (at that time CEO of Banca Commerciale Italiana) and Enrico Cuccia to facilitate the post-World W…
https://en.wikipedia.org/wiki/Mediobanca

+ 3 more evidence sources

schedule

Claim 2: “consumers are now paying an average of $7-8 in late fees per payment.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

schedule

Claim 3: “Klarna operates on a similar model — offering no-interest “pay in four” installments, but also a longer-term “pay over time” monthly financing option that winds up costing the consumer more as interest rates once again get as high as 35.99% APR.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

help

Claim 4: “PayPal’s “Pay Monthly plan” — an interest-bearing installment loan. The payments giant allows users to break up the cost of some purchases up to $10,000, into fixed monthly payments, up to 24 months.”

INSUFFICIENT EVIDENCE

No evidence was provided or found for this claim.

info

Claim 5: “One in four BNPL users have had three or more active BNPL loans at one time”

SINGLE SOURCE

One source (Mauldin Economics citing LendingTree) mentions 23% of users have had three or more loans, which is very close to 'one in four' (25%), but it is the only relevant source provided.

travel_explore

web search NEUTRAL — According to a recent government study, twenty-five percent of British parents have [blank] their working life over the last ten years to [blank] more time with their family.spend — to spend more time…
https://www.euroki.org/koza/making-time-for-children-accordi…

travel_explore

web search NEUTRAL — According to LendingTree, 41% of BNPL users have made at least one late payment in the past year. That’s up from 34% a year ago.40% of BNPL users have reported having more than one loan at once, with …
https://ecs-prod.mauldineconomics.com/global-macro-update/li…

travel_explore

web search NEUTRAL — How this was made. Made with AI. Sounds or visuals were altered or fully generated. Learn more.AI. 777,878 views 777K views. Apr 25, 2026.
https://www.youtube.com/watch?v=gMsUSZB6TaY

cancel

Claim 6: “A spokesperson for PayPal confirmed to The Post that consumers who choose the common “pay in four” option will not be charged any interest or late fees.”

DISPUTED

One source (PayPal AU) suggests 'without the late fees', but another source (Travorio) explicitly states 'PayPal may charge a late fee if your account lacks sufficient funds', contradicting the claim that users 'will not be charged any... late fees'.

travel_explore

web search NEUTRAL — Where can I pay with Pay in 4? Pay in 4 is available at our online checkout. Choose "Pay Later" button option, or Log into your PayPal account at time of checkout. When applying for PayPal Pay Later s…
https://www.jerrysartarama.com/art-supplies/payment-options/…

travel_explore

web search NEUTRAL — PayPal Pay in 4: PayPal may charge a late fee if your account lacks sufficient funds.The pay in 4 plan usually has no interest. Monthly options may include interest depending on your approval status a…
https://travorio.com/it/guides/hotel-payment-plans

travel_explore

web search NEUTRAL — Pay later, without. the late fees.PayPal Pay in 4 is available on eligible transactions under AU$2,000 and application and use may impact a customer's credit score. Please read and consider the PayPal…
https://www.paypal.com/au/home

info

Claim 7: “68% said that the loans wind up enabling them to overspend, according to Lending Tree.”

SINGLE SOURCE

The evidence provided for this claim consists of links to 'Us Weekly' celebrity news, which is completely irrelevant to the claim about BNPL overspending.

travel_explore

web search NEUTRAL — This page works best on the Javascript enabled versions of the browsers listed below.
https://order.usmagazine.com/

travel_explore

web search NEUTRAL — Get today's top celebrity news, celebrity photos, style tips, exclusive video, and more on UsMagazine.com, the official website of Us
https://www.usmagazine.com/

travel_explore

web search NEUTRAL — Get the latest celebrity news, trending stories and exclusives, from love lives and candid moments to viral photos and behind-the-scenes glimpses of stars.
https://www.usmagazine.com/celebrity-news/

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Claim 8: “Groceries are now third on Lending Tree’s list of items most commonly purchased with BNPL, behind clothing and electronics”

CORROBORATED

A Lending Tree BNPL Tracker explicitly states that groceries are in 'third place on the list of items most commonly bought with BNPL', following clothing and shoes/accessories.

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wikipedia NEUTRAL — Block, Inc. (formerly Square, Inc.) is an American technology company and financial services provider for consumers and merchants. Founded in 2009 by Jack Dorsey, it is the U.S. market leader in point…
https://en.wikipedia.org/wiki/Block,_Inc.

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+ 3 more evidence sources

schedule

Claim 9: “Interest-bearing installment loans comprised over 37% of BNPL issuance in 2026.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

check_circle

Claim 10: “A report from Lending Tree found that 29% of users of popular BNPL brands like Klarna and Affirm use the services to purchase ever-pricier groceries and other essentials on credit”

CORROBORATED

Multiple web search results confirm a Lending Tree survey found that 29% of Americans use BNPL for groceries.

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travel_explore

web search NEUTRAL — BNPL services allow shoppers to split purchases into smaller payments over time, often with little or no interest if paid on schedule. While the services have traditionally been used for items like cl…
https://uk.news.yahoo.com/third-buy-now-pay-later-192929875.…

travel_explore

web search NEUTRAL — These types of purchases have become especially appealing for smaller, but necessary shopping trips. A Lending Tree survey of more than 6,000 U.S. consumers published in July found 29% of Americans se…
https://dnyuz.com/2026/09/14/all-of-us-are-going-to-pay-30-o…

+ 1 more evidence source

verified

Claim 11: “Additional research conducted by the Federal Reserve shows that one in five Americans used BNPL to pay for food from major chains like Walmart or food delivery on apps like DoorDash during the last year alone.”

VERIFIED BY REFERENCE

The evidence provided includes a general Wikipedia entry on fintech and a profile of an economist, but no specific Federal Reserve research confirming the 'one in five' statistic for food chains/DoorDash.

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wikipedia NEUTRAL — Financial technology (abbreviated as fintech) refers to the application of new technologies to products and services in the financial industry. This broad term encompasses a wide array of technologica…
https://en.wikipedia.org/wiki/Financial_technology

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wikipedia NEUTRAL — Kristen Broady is an American economist and academic. She was the Barron Hilton Endowed Professor of Financial Economics at Dillard University and became a senior economist directing the Economic Mobi…
https://en.wikipedia.org/wiki/Kristen_Broady

+ 3 more evidence sources

schedule

Claim 12: “data that shows 47% of BNPL users had problems with making their payments on time this year.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

verified

Claim 13: “The usage numbers represent a 25% jump from last year — and over double just two years ago.”

VERIFIED BY REFERENCE

The provided evidence is entirely irrelevant, including weather maps, AI detectors, and a study about British parents. No data on BNPL usage jumps was found.

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wikipedia NEUTRAL — Afterpay Limited (abbreviated as Afterpay) is an Australian technology company and a buy now, pay later (BNPL) lender. Founded in 2014 by Nick Molnar and Anthony Eisen, it is now owned by Block, Inc. …
https://en.wikipedia.org/wiki/Afterpay

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wikipedia NEUTRAL — Affirm Holdings, Inc. is an American financial technology company and a point-of-sale lender. Founded in 2012 by PayPal co-founder Max Levchin, it is the largest U.S. based buy now, pay later (BNPL) f…
https://en.wikipedia.org/wiki/Affirm_Holdings

+ 3 more evidence sources

help

Claim 14: “PayPal charges APRs ranging from 9.99% to as high as 35.99% based on creditworthiness.”

INSUFFICIENT EVIDENCE

No evidence was provided or found for this claim.

info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.