Buy Now, Pay Later: Is This a Set-Up?
- Kelly Doyle
- Oct 26
- 2 min read
Buy now, pay later (BNPL) apps have turned money loans into a tap-and-go convenience — what was once reserved for homes, cars, and medical emergencies is now used for Sephora checkouts and Uber Eats orders.
BNPL platforms, such as Affirm, Klarna, or Afterpay, let users split a purchase into smaller installments over several weeks or months. Now, even your DoorDash order can come with a payment plan.
More than half of Americans use BNPL apps, according to a J.D. Power survey — and most of them are Gen Z. But behind the promise of affordable payments lies a growing web of debt and regret.
Empowerment or a Trap?
Suze Orman, a financial powerhouse and host of The Women and Money Podcast, said BNPL is not only a budgeting issue — it’s a psychological one. The marketing, she said, is aimed at young adults and framed as empowerment.
“What it’s really doing is normalizing debt as a lifestyle,” Orman said.
According to a September LegalShield study, 45% of BNPL users face legal or contractual disputes.“When you split a $100 purchase into four easy payments, it feels harmless,” Orman said. “But when you do that five times in a week, suddenly you’re juggling multiple due dates, overdraft risks, and a distorted sense of affordability.”
The Cost of Convenience
Missed payments are becoming common: 41% of all BNPL users report missing at least one payment in the past year, according to LendingTree. Still, some users say they use BNPL responsibly.
“I have NEVER missed a payment,” Angelina L., a Klarna user, said. “I’ve never owed them more than $250.”
This fall, BNPL activity will begin factoring into credit scores — potentially affecting users’ eligibility for apartments, jobs, and insurance.
For Gen Zers entering adulthood in one of the most expensive decades in modern history, small debts will start impacting their credit scores, trapping Gen Z in a cycle that makes it even harder to move up — you can’t get an apartment, finance a car, or even pass some job screenings.
While Orman said BNPL can help manage cash flow if used responsibly, she warns that it’s “a trap disguised as convenience.”
Klarna, which launched its app in 2018, markets itself as “shopping smarter,” but Orman says these empowering statements can be misleading.
“Unlike traditional credit, BNPL often lacks the same consumer protections, doesn’t build credit history, and can lead to overdraft fees or collections without the user fully understanding the risks,” she said.
The Bottom Line
Orman’s advice is simple.
“If you can’t afford to pay for something in full today, you probably shouldn’t buy it. Debt should never be your default,” she said.
For Gen Z, leaning on BNPL is a symptom of a generation used to instant gratification and facing economic anxiety.
“Financial freedom isn’t about having what you want now — it’s about building a life where you don’t owe anyone anything later,” Orman said.
They may make life feel easier in the moment, but as Orman warns, every swipe still carries a cost.
