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Buy now, pay later (BNPL) has a way of feeling like a life hack. Four payments. No interest. No big hit to your bank account today.
But once the bills start stacking, reality shows up. Motley Fool Money’s 2025 Buy Now, Pay Later Trends Report found that 26% of BNPL users regret using it after realizing how much they actually owed. That’s just over 1 in 4.
And the regret tends to come from a few predictable traps.
The “it’s only $40” problem adds up fast
BNPL is designed to make the full price feel smaller.
Instead of thinking “I’m spending $240,” you think “I’m spending $60 today.” Do that a few times in a month and you can end up with a payment calendar that feels manageable right up until it isn’t.
That helps explain another stat from the same report: 19% of BNPL users say they’ve lost track of upcoming payments. Millennials were the most likely to lose track at 25%.
Once you lose track, your BNPL planning tool ruins your budget.
Most people are not budgeting for it
Only 47% of BNPL users budget for their payments ahead of time, according to the report. That means most people either track loosely or do not plan at all.
BNPL works best when you treat it like a bill you already owe, not a fun thing for “Future You” to just figure out.
If you’re losing track of bills you already owe, it’s likely that you have no idea what APY your savings account is paying you either. High-yield savings accounts can earn you hundreds more on your savings every year versus accounts from the big banks like Chase and Wells Fargo. You can compare the best high-yield savings accounts right here.
Late payments are rising, and that’s where BNPL gets expensive
BNPL companies love the “0% interest” headline. The fine print is what costs people money.
Federal Reserve data shows 24% of BNPL users have made a late payment, up from 18% in 2023. Motley Fool Money’s survey found an even higher share: 29% paid late, including 39% of Gen Z and 35% of millennials.
Late fees, potential financing charges, and the general chaos of missed payments are a big reason people look back and think, “That was not worth it.”
A lot of people are using BNPL for things they cannot afford
The report found 57% of BNPL users rely on it to buy items they otherwise couldn’t afford. Separately, 53% admit they’ve used BNPL for purchases they knew were outside their budget.
That’s the difference between using installments as a tool and using them as permission.
And it helps explain why regret is highest among younger consumers, who are also the biggest users:
- Gen Z regret: 27%
- Millennials regret: 30%
- Gen X regret: 22%
- Boomers regret: 18%
If you’re finally ready to tighten your belt and stop overspending, make sure to put your extra cash in a high-yield savings account earning 10x the national average.
Returns and refunds are messier than people expect
In the Motley Fool Money survey, 32% of BNPL users reported having issues. The most common problems were:
- Returning items (21%)
- Getting a refund (18%)
If you have ever returned something and still had a payment draft, you know how quickly “easy financing” stops feeling easy.
Why younger consumers choose BNPL anyway
BNPL is not a niche tool anymore. The Federal Reserve estimates 15% of U.S. adults used BNPL in 2024, up from 14% in 2023 and 12% in 2022.
And more than half of younger consumers say they use it more than credit cards:
- Gen Z: 51%
- Millennials: 54%
For some people, that’s convenience. For others, it’s access. BNPL can be easier to get approved for, especially if your credit limits are low.
When a credit card is the better tool
If your real goal is breathing room, BNPL is not always the cleanest option.
A 0% intro APR credit card can give you a longer runway, more flexibility, and better consumer protections. You also avoid the “multiple mini-loans at once” problem, because everything stays on one statement with one due date.
If you’re carrying a balance already, that’s worth looking at. A long 0% intro APR offer can give you time to pay down debt without the interest treadmill.
If you want to compare options, check out some of the best 0% intro APR cards and how long each offer lasts.
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Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
