'Buy now, pay later' loan customers are more likely to have mental health problems

Embargoed until: Publicly released: 2025-12-13 03:00

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People with depression, anxiety and posttraumatic stress are more likely to be using buy now, pay later loans, according to international research. The study used data from a long-term mental health study in the US to compare usage of buy now, pay later loans among a group of 2121 people, 341 of whom had used at least one of these loans in the past year. The researchers say likely mental health problems were linked to buy now, pay later usage, as well as being younger or female. The researchers say this could suggest these mental health problems are linked to challenges with financial decision-making, but it's also possible that financial stressors could be contributing to the mental health problems in the other direction.