"“85% of users are actually ... spending more than if they had just paid cash for this or some other structure,” he said on a recent episode. Preston and co-host Bo Hanson, both CFPs at Abound Wealth Management, examined what the marketing pitch (interest-free installments, painless checkout) hides about actual behavior. Preston cites Northwestern Mutual data showing 33% of U.S. adults used BNPL for large purchases in 2025, while 23% now use it for daily purchases like groceries and gas."
"“If you are literally turning your tank of gas into four payments or installments, you're deferring the payment on just day-to-day consumption items. It's your lifestyle.” Hanson said the behavior makes him “really, really, really nervous.” While these services claim to be interest-free, the innovation isn't designed to help you build wealth. Hanson suggested consumers reframe their focus from “what can I buy today on borrowed time” to “what can I save for the future.”"
"“Instead of me spending $1 today, I'd rather have the opportunity to spend $88 in the future. The secret to wealth building is you have to live on less than you make.” If gas requires installments, you are smoothing a shortfall in your budget. For a household carrying credit card balances and saving below 5%, using BNPL on groceries is a flashing budget warning, not a budget tool. If you're using Buy Now Pay Later, it could be a sign that you're living beyond your means."
"Why BNPL behaves worse than a credit card Credit cards show a single growing balance. BNPL fragments obligations across providers, due dates, and apps, which"
BNPL programs let consumers make purchases through installments, often marketed as interest-free and easy to use. Data indicates many users spend more than they would with cash, and usage extends from large purchases to daily needs like groceries and gas. Turning everyday consumption into multiple payments can defer costs without improving financial health, effectively reflecting lifestyle spending beyond current means. For households carrying credit card balances and saving less than 5%, using BNPL for essentials is a budget warning. BNPL also fragments obligations across providers and due dates, making it harder to track and manage compared with a single credit card balance. A wealth-building approach emphasizes living on less than income and saving for the future.
Read at 24/7 Wall St.
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