People with anxiety or depression use ‘buy now, pay later’ loans more often

A recent U.S. study in JAMA Health Forum found that adults with recent symptoms of depression, anxiety, or post-traumatic stress were significantly more likely to have used “buy now, pay later” (BNPL) loans in the past year than adults without these symptoms.

What the study found

• People with recent depressive symptoms had about 1.9 times the odds of using BNPL compared with those without such symptoms, even after adjusting for age, income, and other factors.

• People with anxiety symptoms had roughly 1.8 times the odds of BNPL use.

• Those with probable post‑traumatic stress had more than twice the odds of using BNPL (about 2.35).

• The data came from a nationally representative survey of about 2,100 U.S. adults conducted in March–April 2024 (part of the CLIMB study).

Why might mental health be linked to BNPL?

Researchers suggest several overlapping mechanisms (association, not proof of cause):

• Financial strain: People with depression or anxiety in the sample also tended to have lower income, less savings, and weaker credit, making BNPL’s small installments more appealing or necessary.

• Short‑term relief: Anxiety and low mood can push people toward quick relief and make it harder to weigh long‑term costs, so splitting payments may “feel” safer than it really is.

• Product design: BNPL is highly accessible at checkout, often without traditional credit checks, and can encourage unplanned purchases and overconsumption.

The authors emphasize that the study shows a correlation: it cannot say whether poor mental health leads people to BNPL, BNPL‑related debt worsens mental health, or both feed into each other.

Risks and potential harms

• Heavy BNPL use has been linked elsewhere to higher financial stress, more overdraft fees, and greater “financial fragility” (difficulty handling even small shocks).

• Missed installments can trigger late fees and overdrafts, adding to stress and potentially worsening sleep, mood, and concentration.

• For people already struggling with anxiety or depression, this feedback loop of money stress and mental health can be particularly harmful.

Practical takeaways

• If you live with anxiety or depression, it may help to treat BNPL as a form of credit, not just a payment button: track every plan, total what you owe, and avoid stacking multiple loans.

• Mental health clinicians and financial counselors can ask about BNPL use as one indicator of financial strain and help people plan safer ways to manage purchases and debt.

• Policymakers and regulators are being urged to improve transparency, limit repeat borrowing, and strengthen consumer protections around BNPL, given its ties to vulnerable groups.