Buy now, pay later (BNPL) loans, once marketed mainly for discretionary purchases such as electronics, clothing and gaming consoles, are increasingly being used for rent, groceries, utilities and medical expenses. Americans borrowed $160 billion through BNPL products in 2025, roughly double the amount from two years earlier, including more than $96 billion in interest-free loans, according to research by Federal Reserve economists. Surveys show the shift toward necessities: 54% of borrowers told LendingTree they could not make ends meet without BNPL, while nearly 30% said they had used it for groceries, up from 14% two years earlier. Consumer advocates warn that monthly memberships, processing charges, late fees and overdraft costs can turn apparently inexpensive loans into a source of financial distress, particularly when borrowers hold several loans with overlapping repayment periods. Affirm and Esusu Pay launched a January pilot allowing renters to divide monthly rent into two payments for a $35-to-$50 monthly membership, while Flex offers installment financing for rent and other essential bills. Advocates and industry analysts say BNPL can help manage timing gaps, but its easy availability can also encourage overspending and deepen debt.