"Buy now, pay later" loans creep into essentials for many consumers

“Buy now, pay later” loans were first marketed as a way to pay for expensive, one-time purchases, like a nice pair of shoes or a new gadget. But now, many vendors have been offering those loans to consumers as a way to pay for basic utilities.

Stacy Cowley is a reporter with The New York Times who recently wrote about the explosion in the popularity of these lenders. She said that an increasing number of consumers have come to rely on these apps to get by.

“About half the people who use pay later loans say that they could not purchase any other way,” Cowley said. “So this is particularly prevalent among households with some of the most brittle finances.“

“Marketplace” host Kai Ryssdal spoke with Cowley about her reporting.

Click the audio player above to hear their conversation.