Buy Now, Regret Later? The Truth About Buy Now, Pay Later Apps

Samantha Loies, UC Berkeley, Freshman, Summer 2025

“Buy now, pay later” (BNPL) services like Afterpay, Klarna, and Affirm have exploded in popularity, especially among Gen Z. With just a few taps, people who shop online can split purchases into multiple payments over several weeks with no interest. Sounds perfect, right? But for many young consumers, these apps lead to more spending than saving.

Nearly 60% of Gen Z shoppers have used BNPL (Shawgo, 2023). With sleek designs, fast approvals, and minimal upfront costs, these services are marketed as smarter, more flexible alternatives to credit cards. But beneath the surface lies a growing concern: debt is being disguised as convenience. 

“BNPL made me feel like I could afford things I really couldn’t,” says Emily Chen, a 19-year-old college student who used Klarna to buy clothing and tech gadgets for classes. “At one point I had five different payments going at once and completely lost track. It tanked my budget and I had no idea how to catch up, which is a huge concern especially for a college student like me.”

While the appeal of interest-free installments is clear, the reality is more complicated. Missed payments can result in late fees, overdraft charges, and even damage to your credit score if the service reports to credit bureaus. A 2022 Consumer Financial Protection Bureau (CFPB) report found that over 10% of BNPL users were charged at least one late fee—a number that's steadily climbing as usage grows (Consumer Financial Protection Bureau, 2022).

Financial literacy educator Carlos Ramirez, who runs youth finance workshops in Chicago, says the core issue is misunderstanding. “BNPL isn’t evil, but it’s often seen as free money. In reality, it’s just another form of short-term credit. The danger is when users stack purchases or forget due dates.”

To use BNPL responsibly, experts recommend only using it for planned, necessary purchases, never for impulse buys. It’s also important to review repayment terms carefully, link payments to accounts with enough funds, and set calendar reminders.

As BNPL services continue to grow in popularity, so does the need for better financial education. With the right knowledge, Gen Z can make informed decisions—and avoid falling into debt traps disguised as flexibility.

Sources:

• 2- Statistic Links to both article sources

• Name of 2 people you interviewed, title/position, email if possible

https://quantacred.com/2023/12/19/buy-now-pay-later-usage-patterns-and-late-payments/ 

https://files.consumerfinance.gov/f/documents/cfpb_buy-now-pay-later-market-trends-consumer-impacts_report_2022-09.pdf 

Emily Chen, college student

Carlos Ramirez, financial advisor