Americans using buy now, pay later more than ever

Americans spent more than US$160 billion last year using buy now, pay later plans, according to research published by Federal Reserve economists.

Experts say they’re increasingly seeing people use the plans for everyday expenses like groceries, bills, transportation, and sometimes rent.

“It has been very hard out there for a lot of people,” said Sara Rathner, NerdWallet’s credit card expert. “It’s a tough job market, and it’s a rough economy, and the cost of the things that we buy every day has been going up, in some cases more than people’s incomes.”