Your Money Minute – "Pay In 4 Trouble" (July 30, 2026)
Host: Jessica Ettinger, CNBC
Guest Contributors: Sharon Epperson (CNBC Senior Personal Finance Correspondent), Mike Pearce (Executive Director, Protect Borrowers)
Episode Duration: ~1 minute
Episode Overview
This episode of Your Money Minute sheds light on the growing reliance of Americans on Buy Now, Pay Later (BNPL, or "Pay in 4") services for everyday necessities. It highlights the concerning trend of consumers accumulating debt for essentials like groceries, transportation, and rent, and warns of the severe consequences of missing payments.
Key Discussion Points & Insights
Widespread Use of BNPL for Essentials
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Rising Use for Necessary Expenses:
Jessica Ettinger opens by noting that Americans are increasingly turning to Pay in 4 services not just for non-essentials, but for necessities such as groceries.
[00:04] Jessica Ettinger: "A third of people using these Buy Now Pay later loans are getting into debt at the grocery store and many are now falling behind on those loan payments."
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Sharp Increase in Usage:
Sharon Epperson provides supporting data from a LendingTree survey:
[00:20] Sharon Epperson: "29% of buy now Pay later users said they used these short term installment loans to buy groceries, more than double the rate of two years ago."
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Expanding to Other Essential Costs:
BNPL is also being used for car repairs and rent:
[00:37] Sharon Epperson: "18% use these loans for car repairs and 13% to pay their rent."
Financial Risks and Behavioral Trends
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Avoiding Credit Card Debt:
Many adults are using BNPL as an alternative to credit cards to avoid high-interest charges.
[00:42] Jessica Ettinger: "Data show nearly half of all American adults have used a BNPL service. Many are trying to avoid racking up credit card debt and the interest on that."
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Payment Delinquency and Late Fees:
Nearly half of BNPL users have missed a payment, with missed payments resulting in substantial fees and high interest rates.
[00:46] Jessica Ettinger: "Nearly half of those now using Buy Now Pay later services say they’ve been late with payments at least once in the past year. Paying for services mostly don’t charge interest until payments are missed."
[01:04] Sharon Epperson: "Missing payments, which can be due every two weeks in some plans, is costly with interest and financing fees up to 36%."
The Dangers of Falling Behind
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Escalating Debt Resembling Payday Loans:
Mike Pearce emphasizes the dangers of BNPL debt spiraling into predatory loan territory:
[01:18] Mike Pearce: "Our analysis shows that when you start to fall behind on Buy Now Pay later that can make a small loan turn into something that looks more like a payday loan. It's the equivalent of an interest rate of 100% APR or more. Because you have these late fees that stack on top of each other..."
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Broader Implications:
Jessica Ettinger concludes with a warning about the real danger these trends pose.
[01:33] Jessica Ettinger: "The danger is real for many."
Notable Quotes & Memorable Moments
- Jessica Ettinger (00:04): "More Americans are using pay in four services not just for wants like travel, but for needs like food. A third of people using these Buy Now Pay later loans are getting into debt at the grocery store and many are now falling behind on those loan payments."
- Sharon Epperson (00:20): "29% of buy now Pay later users said they used these short term installment loans to buy groceries, more than double the rate of two years ago..."
- Mike Pearce (01:18): "When you start to fall behind on Buy Now Pay later that can make a small loan turn into something that looks more like a payday loan. It’s the equivalent of an interest rate of 100% APR or more. Because you have these late fees that stack on top of each other..."
Timeline of Key Segments
| Timestamp | Segment |
|-----------|--------------------------------------------------------------------------------------|
| 00:00 | Introduction - Americans using BNPL for needs, not just wants |
| 00:20 | Sharon Epperson shares LendingTree survey findings |
| 00:37 | BNPL use for car repairs and rent |
| 00:42 | Statistics on the prevalence of BNPL services |
| 00:46 | Concerns about late payments and the onset of interest and fees |
| 01:04 | Details on interest rates and fee schedules for missed payments |
| 01:18 | Mike Pearce explains how BNPL debt can escalate into payday-loan-like status |
| 01:33 | Closing warning about the real dangers for consumers |
Summary
This episode quickly but thoroughly addresses the escalating use of BNPL services for essential expenses, warns of the growing risk of debt accumulation from missed payments, and draws parallels between defaulting on BNPL loans and falling into predatory lending traps. The tone is urgent and informative, supported by timely survey data and expert analysis.
For more details, listeners are directed to the full report on CNBC.com.
