BNPL debts piling up? An expert weighs in on what you need to know about debt relief

You may have taken out a Buy Now, Pay Later (BNPL) loan, thinking it'd be a simple way to break a purchase into smaller payments. But what happens if you've missed a payment?

More than 4 in 10 (41%) BNPL users say they paid late on at least one account in 2025, according to a LendingTree survey, up from 34% in 2024.

If you're struggling, is BNPL eligible for debt relief? We spoke with an expert to break down how BNPL fits into the debt-relief world, what makes it different from traditional loans and what you should know before taking one out.

BNPL can qualify for debt relief, but it's not as straightforward as traditional debt, like credit cards or personal loans. That's because BNPL companies operate differently from banks and credit unions.

"It all depends on the buy now, pay later provider," says Bruce McClary, spokesperson at the National Foundation for Credit Counseling (NFCC). "Many of these lenders are fintechs with their own rules, which can complicate the debt-relief process and make it vary from lender to lender."

Debt relief companies also usually require clients to have a minimum amount of debt to qualify for their programs. Some companies set this minimum at $7,500, while others require $10,000 or more. However, the average BNPL loan balance is about $760, according to Morgan Stanley, and this figure varies widely by household income.

Because of these smaller balances and the differences between BNPL providers, many users may not meet the debt relief program thresholds.

Taking out a BNPL loan can be helpful if you need to break up payments and are confident you can pay it off on time. However, McClary warns that people need to be very careful with buy now, pay later to avoid serious consequences.

"If you miss a payment or don't follow the original terms, things can change quickly," says McClary. "A 0% offer can turn into a high-interest rate situation and late fees and penalties may apply."

On top of that, not all BNPL payments show up on your credit report, but unpaid debt can still be sent to collections. A LendingTree survey found that more than four in 10 (41%) BNPL users paid late in the past year, making this a common and significant risk.

One way to approach new purchases without racking up high fees is by using a 0% APR card that gives you a temporary break from interest while you pay down your balance.

The Chase Freedom Unlimited® (see rates and fees) offers a 0% intro APR for 15 months from account opening on purchases and balance transfers, followed by a variable APR of 18.24% - 27.74%. You'll also earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening, plus ongoing cash back across popular categories, including 5% back on travel booked through Chase Travel℠.

The Blue Cash Everyday® Card from American Express also offers a 0% intro APR for 15 months on purchases and balance transfers from the date of account opening, then a variable APR of 19.74%-28.74% applies (see rates and fees). On top of that, it earns 3% cash back at U.S. supermarkets and online retailers and offers a few useful statement credits.

Communicate early and often with your BNPL lender

Don't wait until you miss payments to contact your BNPL lender. If you notice any signs of trouble ahead, reach out proactively. Explaining your situation early can help you avoid late fees, penalties or more severe consequences.

"It's always better to reach out before things get really bad — before you miss a payment or have trouble sticking to your repayment plan," McClary says. "Talking directly to your lender early can help you find a way to avoid trouble. Waiting until after multiple missed payments makes negotiating harder and increases long-term consequences."

Seek help from a nonprofit credit counseling agency

On the other hand, if you're already struggling to manage BNPL debt, McClary says that one of the best first steps is to contact a nonprofit credit counseling agency. These agencies provide free or low-cost services like a thorough budget review, debt management advice and an action plan tailored to your financial situation. They are staffed by certified counselors who can help you understand your options without the pressure of fees or sales tactics.

"That initial budget review and determination of suitability is typically offered at no cost," McClary says. "If you're already facing financial hardship, you shouldn't have to pay high fees before figuring out your next steps."

Nonprofit agencies can also negotiate with creditors on your behalf and help set up manageable repayment plans, which might include your BNPL lenders, depending on the provider.

At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Bruce McClary, SVP of Membership and Communications at the National Foundation for Credit Counseling.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every loans review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loans products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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For rates and fees of the Blue Cash Everyday® Card from American Express, click here.