The ‘buy now pay later’ model is gaining popularity in France where consumer credit represents 44% of the debt of families in difficulty. According to the monthly barometer published by the Bank of France on 13 October, in the first nine months of the year over 121,000 requests for access to over-indebtedness procedures were submitted, an increase of 11% compared to the same period of the previous year.
A model that is catching on
Installment purchases are always the most popular, following a model exported from the United States. Unlike mortgages, consumer loans are not intended for the purchase or renovation of properties, nor for financing business activities, but rather for purchasing goods and services related to daily life, as well as for treating yourself to a few whims. Companies that allow deferred payments are now ubiquitous. And the risk of making compulsive purchases is just around the corner. Also because the monthly installment formula lowers the perception of the real price.
Yves has a pension of 1,042 euros, he pays 377 euros only in installments
Le Monde has collected some testimonies from citizens who turned to the Crésus association of the Île-de-France, a French non-profit association network created to fight against over-indebtedness and banking exclusion. Among those in difficulty is Yves, 77 years old, a pensioner who lives in Paris. He has always paid the rent and claims he has never had debt. Yet, over the years he has taken out four consumer loans with Cofidis and Sofinco, accumulating total installments of 377 euros.
With a monthly pension of 1,042 euros, Yves can no longer meet the repayments. His case has been taken over by the Banque de France which has already set him an appointment to lighten his financial burden: the aim is to reduce the interest rates applied by creditors bringing them to a level close to zero and lower the monthly installments to around one hundred euros.
The woman who asked for 60 loans and the painting who accumulated 11,538 euros in unpaid rent
The most emblematic case, however, is that of a woman who had taken out 60 consumer loans without anyone stopping her. “He had to repay 10,875 euros a month. He thought about suicide” a consultant from the center tells Le Monde. “They tell us that operators check customers’ bank statements before granting consumer loans or installment payments. This is not true.”
Others fall under the burden of rent. It is the story of Étienne, a former IT manager graduated from the École des Mines, who was left without a job during the 2020 pandemic. Having exhausted his unemployment benefits, he now receives a subsidy of 604 euros a month, while the rent costs him 920 euros. Since January 2025 he stopped paying it and, when he turned to the Crésus association at the beginning of October, he had accumulated 11,538 euros in arrears.
The risk of not being able to pay
“With regards to installment payments”, Hélène Tanguy, director of private services at the Banque de France, explains to Le Monde, “the risk is not so much that of excessive credit, but rather that of an accumulation of small financial commitments that end up unbalancing a person’s budget, without them being fully aware of it”. In short, the problem is now well known. So much so that France has already introduced rules in 2010 to contain the phenomenon, for example by prohibiting particularly risky forms of credit.
An Italian problem too
The ‘buy now pay later’ model has also taken hold in Italy. In the second half of 2025, according to the Crif Market Outlook (a report drawn up by a company specializing in credit information), the financing provided through this loan method increased by 23% compared to the same period of 2024 and by 220% compared to the first half of 2022. However, traditional loans under 1,500 euros fell by 10%. According to the report, 55% of requests come from women, while as regards age, users mainly belong to ‘generation X’ (34%) and ‘millennials’ (29.5%).