Americans Use ‘Buy Now, Pay Later’ Apps To Combat High Grocery Bills
High grocery bills are becoming a major problem for Democrats. As Americans are struggling to make ends meet, without much effort to mitigate the problems and concerns by the party in power.
The situation has gotten so tense, that families have resorted to taking out loans to pay for groceries using “buy now, pay later” (BNPL) apps according to the Daily Mail.
More and more retailers have begun supporting the option. Including Costco, Doordash, Safeway, and Starbucks.
“Installment-pay services such as Klarna and Afterpay offer interest-free short-term loans to cover purchases,” the Daily Mail explained. “But the fines for late payments can be steep, and critics fear their ease of use could lure shoppers into dangerous debt.”
Zip is another service that has grown in popularity amongst American consumers, and the app has reported a 95% rise in the purchase of groceries in the US. With a 64% increase in restaurant purchases.
How the BNPL system works is simple: users can pay for groceries at just 25% down, then pay the remaining 75% across four payments over a six week period. Often without incurring interest.
According to a July report by Fitch Ratings, users who utilize BNPL services the most tend to have higher debt than the average American. As “more than 41 percent of applicants have a poor credit history.”
As Credit Karma would share, roughly 33% – or one third – of BNPL users had fallen behind on at least one payment. With 72% of those users seeing an impact to their credit score as a result.
Added late fees can also quickly turn inexpensive payments into costly ones if payments are not made on time.
Regardless, this avenue for payments can be tempting for US families. Especially because the country saw a 13.1% increase in grocery prices in July from the year prior.
“In 2021, $45.9 billion in pay-later transactions were made online, a sharp increase from $15.3 billion the year before,” the Daily Mail reported. “According to a GlobalData analysis reported by the New York Times.”
As the 2022 midterms approach, Democrats appear to be more focused on systematically changing the country through its various social, environmental, health, and tax initiatives and passion projects.
Instead of focusing on two of the biggest hot-button issues of today; grocery and gas prices.
“It’s a grocery and gas election.” Rep. Tom Emmer (R-MN), chairman of House Republicans’ campaign arm said. “The number 1 issue in every one of the battleground districts that we look at remains inflation and the economy.”
Though the high costs of food are likely to remain no matter who takes control of the House and Senate in 2022, Republicans are campaigning on the real issues that Americans are concerned about while Democrats ignore them and pretend they don’t exist.
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