Can Buy Now, Pay Later debt impact Social Security recipients?

Buy Now, Pay Later arrangements come with risks that can impact your finances, particularly for retirees. Nora Carol Photography/Getty Images As inflation continues to skyrocket , causing the cost of everything from groceries to healthcare to grow rapidly, it's putting significant strain on household budgets across the nation. And while most people are feeling at least some of the impact of today's higher prices, these elevated costs have led many older Americans — and those on fixed budgets, in particular — to look for new ways to manage their spending. For some, that means turning to Buy Now, Pay Later (BNPL) services, which let borrowers split their purchases into smaller installments over time, often without interest. These payment options were once largely the domain of younger shoppers making online retail purchases, but they're increasingly being used by older consumers, too. Recent studies show that more people are leaning on BNPL installment plans to cover groceries and other everyday expenses, not just discretionary buys. And for retirees living primarily on Social Security, the appeal is easy to understand: BNPL plans can make a large or unexpected expense feel more manageable without immediately draining a checking account. But these payment arrangements come with important trade-offs, which can create financial challenges that extend well beyond the original purchase. …