The Economy Is So Bad That People Are Using Klarna for Rent and Utilities
"It’s a roller-coaster ride, up and down — I can't afford to have an emergency." The post The Economy Is So Bad That People Are Using Klarna for Rent and Utilities appeared first on Futurism .
The American economy finds itself in a dire state, leading some individuals to utilize "buy-now, pay-later" (BNPL) services like Klarna for essential expenses such as rent and utility bills. This phenomenon, highlighted by a survey conducted by LendingTree, reveals that half of the respondents who use BNPL loans would struggle to make ends meet without this option.
In 2025, US consumers spent nearly $160 billion through BNPL loans. Experts note that BNPL has become a crucial source of working capital for the modern middle class, used for various needs including medical and dental care, as well as recurring expenses like rent and utility bills. Baltimore resident Ashley Reed, who maxed out her credit cards after a family medical emergency, now uses BNPL loans like Klarna to cover essential bills, paying around $700 a month to reduce her debt.
While BNPL loans provide temporary relief for those facing financial strain, they are merely a short-term solution for a deeper issue of affordability. Lauren Sanders, an attorney at the National Consumer Law Center, acknowledges that BNPL loans help address the real need for immediate funds but warns that they merely add fees to consumers' monthly budgets, leaving them in a precarious position the following week.
Written by urgent.news from Futurism's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
