A local financial group said more people in Northeast Florida are falling into debt after borrowing money to pay for groceries.
Financial advisors told Action News Jax some people are adding 20% to their debt load through a buy now, pay later loan program.
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When you think of layaway, you pay first and get the item later. But what if you could get groceries now and pay later? That’s exactly what “Buy Now, Pay Later” does.
“About 10% to 15% of our clients are really using Buy Now, Pay Later,” director of Step 2 Success Michelle Hughes said.
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Step 2 Success, a Jacksonville-based financial stability program led by Hughes, found through credit checks that clients are using these Buy-Now, Pay-Later loans. But many are paying late, increasing their debt, according to Lending Tree.
“I will say they added another 20% to their debt,” Hughes said.
Hughes offered a free alternative to help families avoid going into debt to pay for groceries.
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“We have a food pantry. It’s open five days a week. You can go on our website, make an appointment and we have other food pantries throughout the city of Jacksonville,” Hughes said.
Hughes understands why someone would consider getting this kind of loan.
“First of all, it’s convenient and it’s because of rising inflation. However, financially, it’s not a smart move at all,” Hughes said.
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A Lending Tree survey found 25% of Buy Now, Pay Later users are funding grocery purchases with the loans—up from 14% in 2024.
According to the survey, 41% of respondents reported a late Buy Now, Pay Later payment in the past year, up from 34% the year before.
Hughes said this loan program is believed to be catering to low-income individuals, harming their finances with late fees and high interest rates.
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