Buy-now-pay-later services make it very easy to spend — and influencers are sounding the alarm

• Micro-trends that circulate on social media can trigger some to make too many online purchases.

• Buy-now-pay-later can make the true costs of buying items seem lower.

• These payments add up over time, leading to a debt spiral that's difficult to escape.

Buy-now-pay-later services (BNPL), such as Klarna and Affirm, have made it easier than ever to keep up with influencer micro-trends — but young people say such services are increasingly trapping them into a vicious debt cycle.

Jess Riley, a 31-year-old content creator who has shared her debt journey on TikTok, said that BNPL, combined with micro-fashion trends, almost led her to financial ruin.

"I was definitely one of those people that was very susceptible to influencers," she said. "When someone put out a new necklace, I instantly wanted that necklace … I would put it on Klarna just so I could have it."

This impulse buying was just that, though. Sometimes Riley would forget what she ordered almost immediately.

Riley is far from alone. Consumers and commentators who spoke to Business Insider say BNPL tempts people to make impulsive purchases and rack up debt by making it seem like costs are less than they actually are.

It makes shopping online so easy that it almost becomes mindless, particularly on social media.

Simon Trevethick, head of communications at StepChange, a UK debt charity, told BI that the lack of regulation of BNPL apps means people can accumulate multiple debts across various providers "often without proper affordability assessments."

"If repayments become unaffordable, these debts can then incur late fees and interest charges that place people in financial difficulty," he said.

In the US, the Consumer Financial Protection Bureau took steps last year to increase regulation of BNPL providers, Reuters reported. Lenders will be required to refund returned products, and provide assistance with billing disputes. However, they are not required to assess whether a customer can afford the loan and repayments.

The exact amount owed to BNPL services is unknown, but between 2019 and 2021, the number of such loans in the US increased by 1,100%, according to the CFPB.

In the 2024 holiday season, Americans were expected to spend $18.5 billion using BNPL services, Reuters reported.

"If you are unable to afford your purchase today, you can explain away not having the money by making multiple payments over time," Traci Williams, a certified clinical psychologist and financial therapist, told BI.