NEW YORK (WABC) — You may be familiar with the acronym BNPL, which stands for Buy Now Pay Later. It’s a convenient and tempting option to help afford some of those more expensive purchases by breaking up payments into multiple, smaller transactions.

However, instead of using BNPL for luxuries like pricey shoes or designer handbags, some consumers are now opting to use it for necessities, like food and rent.

But some people are hesitant to use BNPL.

“Normally if I buy something, it’s because I budgeted,” said Carol Elias, a consumer we spoke with in SoHo.

Others use it to help with big purchases.

“I like to pay in four installments when I go on a cruise or trip,” said Mandy Chol.

But now, financial experts are seeing these budgeting trends take a turn.

“We’re not just talking about big screen TVs and designer handbags. No, we’re talking about things like groceries,” said LendingTree’s Chief Consumer Finance Analyst, Matt Schultz.

Schultz says BNPL has boomed, but this isn’t necessarily a good thing.

“Buy now pay later is incredibly popular, but it’s also a sign of how many people are really struggling out here with costs,” Schultz said.

The tool has become an emotional and financial crutch to ease the pain of big purchases.

“These types of services like buy now pay later, like I said, they look very attractive because they offer, you know, at least a little bit of a band-aid between you know, what’s happening now and what’s happening in the future financially, right,” Schultz said.

Dr. Erika Rasure is a Chief Financial Wellness Advisor with Beyond Finance. She says there are pros to BNPL.

“Of course I do. I’m all about maximizing our cash flow, you know. And I think intention is key when using buy now pay later. And I do believe it should be used sparingly,” Rasure said.

But there are also cons.

“It’s very easy to start stacking buy now pay later payments all on top of each other. And then all of a sudden, you wake up one day, and you’re like, I can’t make any of these payments. And the interest consequences are, you know, even worse than what’s going on with my credit cards,” Dr. Rasure said.

So before you feel backed into a corner where BNPL is your only option, Dr. Rasure’s biggest advice is to find clarity first and look at cutting costs before adding debt.

“You can only make so much money, you can only stretch yourself so far. But it’s asking yourself, you know, where can I start to create some breathing room in my life,” Dr. Rasure said.

When using BNPL, be cautious. Missed payments can mean late fees. Never link your credit card and limit the number of BNPL loans you have at one time.

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