Just ask a question from yourself, would you like to buy your Poha plate on a loan? Perhaps you wouldn't. You would avoid falling into debt over a Poha. But American households seem trapped in a debt cycle.

In America, due to financial crises, the hottest trend is grasping, people are buying groceries and daily food items on loan, this is a shocking truth about this developed country. Many households are suffering from money crises after covid breakout and inflation is squeezing their monthly budget. So people are buying food using instant credit apps by taking out a loan through BUY NOW, PAY LATER Schemes also called BNPL. People use it to get their desired devices, to buy appliances, or for expensive purchases like a car or machinery.

These kinds of schemes are like you can buy something today on a loan and get what you need on the same day, but you don't have to make the payment immediately. The bill will be split in easy installments and pay the loan over a period of time. But buying food on EMI is a sign of financial sting. It usually means you don't have enough money in your pocket today even for food like essential daily life expenses.

Let's look at the statistics of the Consumer Financial Protection Bureau (CFPB). About 50%, of Americans, use by now pay later apps. Out of these, one in five use apps to get groceries. 27% of Americans use these loans till the next payment is credited to their account.

During the Covid quarantine period, in the first two months of 2020, 40% of BNPL loans were issued on groceries, 38% on home furnishings, and 8% on others. During the pandemic and after that, many households needed financial support, so they were trapped in these apps because of their very easy-to-use interfaces and the only process is installing and signing up. In 2019, By now, pay later loans amounted to just $2 billion, and in just 2 years (2021) this number increased up to $24 billion, approx. more than 1000%.

You can assume all grocery prices in the US with the comparison of the Prices of eggs shot up by 138%, and Butter sticks by 38.5%. The monthly expenses of groceries doubled in these 2 years. Only in 2022, Americans had $986 billion worth of credit card debt. It is the largest jump in history.

It's possible that some Americans may be getting loans for groceries due to financial hardship or unexpected expenses that have left them unable to afford basic necessities like food. This can be particularly challenging for those who are living paycheck to paycheck or facing unemployment, as unexpected expenses or a loss of income can quickly deplete their financial resources.

In some cases, people may turn to payday loans or other types of high-interest loans in order to cover their immediate expenses, including groceries. Unfortunately, these types of loans can come with high fees and interest rates, which can make it difficult to pay them back in a timely manner and can lead to a cycle of debt.

It's important for individuals who are struggling to make ends meet to seek out resources and support that can help them address their financial challenges in a sustainable way. This may include seeking out financial counseling or assistance, exploring food assistance programs or other forms of public assistance, or finding ways to increase their income through additional work or job training.