The direction of food financing reveals the increasing consumer division with the increase in grocery prices

More consumers in the economic environment today finance basic necessities such as food by buying now, and paying subsequent financing options.

It is a fact that highlights the “consumer health encouragement today,” according to Aaron Sondaram, Vice President and Upper Stock Analyst at CFRA Research.

Today, an increasing number of purchase now, users later use these short -term loans Buy groceries. April Lindingtree’s report shows that 25 % of these users used the service to buy groceries, up from 14 % of the year.

“Low -income families face more strict financial options than medium and high income families,” Sondaram told Fox Business: “When the short -term cash flow takes on long -term financial stability, it can indicate deeper financial pressure that may have ripples on the road.”

The expert says the risk of purchase now, and later pushed: “A ticket to increase spending.”

Equipment services such as Afterpay, Klarna, Affirm and PayPal have increased in recent years, as consumers who suffer from financial distress were looking to extend their portfolios. Traditionally, it was used for large ticket elements, allowing consumers to make purchases and pay for them in installments, often without any benefit or fees.

Consumers are only beaten by the benefits of some expanded payment plans and the matter will end up paying the late fees if they miss the payment. However, research shows that shoppers not only used these services, but rather they are taking multiple loans simultaneously and Lost payments.

According to LindingTree data, more than 40 % of users say they paid late last year, up from 34 % a year ago.

Experts warn of the hidden risks to purchase now, and later pushed

Matt Schools, Senior Consumer Finance Observer, Senior Consumer Financing Analyst, LindingTree, Consumer Financing Analyst, Consumer Empire for Consumer Finance at LindingTree, Business, the data received from the report is “it is clear that people are struggling and looking for ways to expand their budget a little in the midst of high prices and general economic certainty.”

From 2020 to 2024, the consumer price index (CPI)-a wide measure of daily goods such as gasoline, grocery stores and rental cost -23.6 %, increased, exceeding the entire index, which grew by 21.2 % during the same period.

Between 2020 and 2021, the rise in food costs in part of Lage was driven by disrupting the supply chain associated with Covid-19 and the preferences of transformation, according to the Ministry of Agriculture (USDA).

In 2022, food prices increased at the fastest frequency since 1979, due to a large extent Perfect bird flu is very ill (HPAI) as well as the Russian invasion of Ukraine, which has exacerbated the pressure of other inflationary at the economy level, such as high energy costs, according to the US Department of Agriculture.

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While the growth of food prices slowed in 2023 and 2024 because the prices of foodstuffs in bulk and these other inflationary factors have reduced through the industries, some experts fear the main Donald Trump The ongoing trade war can increase food prices again.

“Many of what we see on our grocery stores are imported, including things like coffee, fruits and seafood,” said Scholls. “Unfortunately, this makes it likely to become some elements in the grocery list at least more expensive in the near future.”

Schools added that consumers should start the collaboration with higher costs when passing their budget.

“It may take some sacrifice, but it is better to prepare for the worse and surprise with pleasure in the best and it ends up to stampede later,” he said.