For many New Yorkers, Buy Now, Pay Later has quietly shifted from a checkout option to a coping mechanism. New data from the Community Service Society of New York paints a clear picture: a growing share of consumers are relying on short-term debt, including BNPL, not for discretionary purchases, but to cover everyday necessities.
The CSS report found that more than a quarter of respondents rely on short-term debt such as credit cards, BNPL, or cash advances to pay for regular expenses. Moderate-income households, those earning between 201% and 400% of the federal poverty level, reported the highest reliance on these tools, outpacing both lower- and higher-income groups. This points to a growing policy gap: many moderate-income consumers earn too much to qualify for assistance, yet too little to absorb rising costs without borrowing.
The data also highlights how thin financial cushions have become. One in four New Yorkers reported having no emergency savings, and more than a quarter of moderate-income respondents said they could not cover a $400 unexpected expense. When a grocery bill, utility spike, or prescription requires financing, short-term debt becomes a survival strategy rather than a choice.
Racial disparities further underscore the issue. National and state-level research consistently shows Black and Hispanic consumers, particularly women, are more likely to use BNPL products. These patterns align with broader affordability pressures driven by housing costs, healthcare expenses, childcare, and education, all rising faster than wages.
For companies engaging consumers around repayment, these findings matter. Consumers are juggling multiple forms of debt at once: credit cards, medical bills, rent back payments, and installment products. Nearly one-third of respondents said their debt makes them feel anxious or overwhelmed, and many reported reduced savings or lower credit scores as a result.
New York’s 2025 BNPL Act introduces licensing and oversight for BNPL providers, aiming to curb hidden fees and over-borrowing. But regulation alone will not reduce reliance on short-term debt. The data suggests that until affordability improves and income stability strengthens, many consumers will continue to borrow simply to get by.
