Buy Now, Pay Later Uncovered: Members Share the Benefits and Hidden Risks

Buy Now, Pay Later (BNPL) products are becoming more widely used, so we set out to learn how members are using them—and what potential pitfalls to be aware of. 

At SaverLife, we spoke with members who’ve used BNPL to navigate both opportunity and emergency. From handling day-to-day expenses to investing in their future, your community is making real-world choices under real pressure. Here’s what they had to say.

📈Managing Cash Flow: Motivations for BNPL

For some people, BNPL is a way to manage cash flow on a tight budget. Through our research and speaking with members, we learned that products like BNPL often offer lower-cost transactional accounts, faster ways to make and receive payments, and opportunities for them to visualize and interact with their personal financial data to help them make financial decisions.

One SaverLife member shared how they used BNPL to buy a laptop so they could take a college course. Another member emphasized the benefit of aligning payments with their pay schedules: “I don’t want to take a giant hit right away. I like being able to split payments, so two come out this month and two the next, aligning with my paychecks.” 

These purchases weren’t luxuries—they were often needs, made possible by flexible payment plans. SaverLife members most commonly use BNPL to purchase clothing (29%), furniture (21%), and basic necessities such as groceries (17%).

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⚠️ What Can Go Wrong: Member Cautions About BNPL

While some members shared that their experiences were positive, others said the structure of BNPL apps created new stress.

One member described how BNPL auto-withdrawals blindsided them: “Payday morning could feel like my paycheck never even existed.” While BNPL offers flexibility, it can also lead to financial strain when payments overlap with other obligations. Another member noted that while splitting payments is helpful, “if you’re not careful, it can bind you when other bills come due.” 

Some members also shared how using multiple short-term tools at once—BNPL, cash advances, and credit cards—created a debt spiral. “I had to wait to pay my credit card bill, and that meant late fees and dings on my credit,” one person told us.

Ultimately, while these tools may help today, they can make it harder to get ahead and plan for tomorrow, especially if fees add up or your cash flow gets thrown off when navigating unexpected withdrawals.

What You Can Learn From Others’ Experiences

1. Know the Total Cost

Before you take advantage of BNPL or Cash Advance, check:

• Are there late fees?
  • One member explained how late fees and other charges are often poorly disclosed, leading to unexpected costs.
    
• Is tipping “optional” but still pushed on you?
  • Don’t be fooled! Tipping models may encourage users to pay higher costs than necessary.
    
• Will you be charged if your account is overdrawn?
  • Despite being marketed as tools for financial flexibility, these products do not reduce overdrafts—instead, we learned that members experience an increase, suggesting they may contribute to financial strain rather than alleviate it.

Remember! The fine print matters. A “free” loan can cost more than you think.

2. Set Reminders for Repayments

Automated withdrawals can catch you off guard. If possible, set calendar reminders a few days before your payment is due so you can make sure the money is in your account, or move things around if needed.

3. Use One Tool at a Time

It’s easy to start using multiple services to keep up with bills, but that’s how debt stacking starts. Stick to one tool if you can, and make a plan to stop using it once your situation stabilizes. Through our research we found that many users don’t just rely on a single credit product—they stack multiple forms of credit, including fintech credit, mainstream credit (credit cards), and high-cost credit (auto title or payday loans). This suggests that fintech credit isn’t replacing high-cost borrowing; it’s adding to it, making it even harder for consumers to keep up with payments and avoid financial strain.

4. Look for Alternatives

Some community organizations, credit unions, and even employers offer lower-cost options. Also, check to see if you qualify for:

• Emergency rental or utility assistance
  
• Food programs (like SNAP or local food banks)
  
• Free financial coaching- check out SaverPerks partner Advisors Give Back.
  

5. Build a Small Safety Net (Even $5 Counts)

It’s hard to save when every dollar is already spoken for—but even putting aside $5 per paycheck can help you avoid turning to loans in the future. Apps like SaverLife make it easy to start small and build a savings habit.

We love hearing from you! Have you used BNPL and want to share if it worked (or didn’t work) for you?! Let us know! We are always looking to chat to members and share their stories. Here are some examples.