Is Buy Now, Pay Later (BNPL) making overspending worse?

Not for everyone, but federal research shows BNPL borrowers are more likely to carry other debts and have more delinquencies than non-users on average.

Why are budgets failing for so many people now?

High household debt, rising delinquencies from post-pandemic lows, sticky recurring charges, and friction to cancel create 'leaks' that manual budgeting can counter.

Why Manual Budgeting Works (Even in 2025)

Budgets leak in a subscription world.
Manual, envelope-style planning adds guardrails and clarity—without bank connections.

The money landscape is noisier

According to the New York Fed’s Quarterly Report on Household Debt and Credit, U.S. household debt reached $18.39 trillion in Q2 2025, and credit card delinquency rates have risen from post-pandemic lows—even among prime and super-prime borrowers—underscoring the value of closely tracking everyday spending.

✅ People-first budgeting matters when small recurring charges and pay-later plans hide the true picture.

Illustration of envelope-style manual budgeting categories

Why budgets “leak” today

Subscription creep & churn: People underestimate subscriptions—one study found an $86 estimate vs. $219 actual per month (a $133 gap). Churn keeps totals shifting; many cancel and re-subscribe throughout the year.
Hard-to-cancel defaults: Auto-renew experiences and free-trial flips make costs easy to miss.
Buy Now, Pay Later (BNPL): Installments feel small, but totals can pile up across apps and cards.

Mobile auto-renewal warning illustration highlighting subscription renewal

Manual vs. “set-and-forget” budgets

	Manual (Envelope-style)	Set-and-forget (Purely automated)
Visibility	High—category limits you feel	Moderate—dashboards you may ignore
Behavior guardrails	Strong—spend stops when the envelope is empty	Weak—transactions log after the fact
Subscriptions	Forces a monthly review & keep/cancel decision	Easy to miss small renewals
BNPL & micro-purchases	Full cost allocated up front	Can hide in transaction noise
Effort	Light but intentional	Low, but easier to drift

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How SeaBird puts manual power in your hands

Plan it: Set monthly amounts by category in minutes.
Track it: Log expenses with a one-tap credit/debit flow.
See it: Real-time running balances per category and a dashboard total you can’t ignore.
Tame subscriptions: Reconcile a “Subscriptions” category monthly—cancel what you didn’t mean to keep.
Handle BNPL: Allocate the full purchase on day one so the real cost hits your plan upfront.

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Download our budgeting template · Explore insights in our Articles & Tips section

Abstract finance dashboard user interface illustration

Quick start: a 20-minute envelope setup

List 8–12 categories you actually spend on (e.g., Groceries, Gas, Eating Out, Subscriptions, Essentials, Fun, Debt Payments, Savings).
Assign amounts you can live with for this month.
Move last month’s “leaks” (streaming, app renewals) into Subscriptions and cap it.
Log spending in the moment; stop when a category hits zero (or make a deliberate trade-off).
Review weekly; adjust next month based on reality—not vibes.

SeaBird provides budgeting software and educational content; it does not provide financial, investment, or tax advice.

Frequently Asked Questions

Does manual budgeting still work in a mostly-digital world?

Yes. Envelope-style budgeting creates clear limits per category and helps you make trade-offs in real time—digital “envelopes” give you the same guardrails without carrying cash.

How much do people really spend on subscriptions?

Surveys suggest consumers underestimate materially; one itemized study found a $219/month actual vs. an $86 guess. Manual budgeting surfaces forgotten renewals and forces a keep/cancel decision.

Is BNPL making overspending worse?

Not for everyone—but research shows BNPL borrowers, on average, carry more debts and are more likely to have delinquencies than non-users. Allocating the full cost upfront counters the “small installment” effect.

Why are budgets failing for so many people right now?

Debt is high, delinquencies have risen from post-pandemic lows, and recurring charges + cancellation friction create “leaks.” Manual budgeting adds visibility and guardrails.

References

New York Fed — Household Debt & Credit: Interactive overview · Q2 2025 report (PDF)
FRED — Delinquency Rate on Credit Card Loans (DRCCLACBS): Series page
Reuters — U.S. consumers with prime credit are starting to slip on payments (Aug 25, 2025): Read article
C+R Research — Subscription Service Statistics & Costs (Updated Jul 26, 2024): Study summary
Deloitte — Digital Media Trends 2025: Report overview · Data dashboard
Pew Research Center — 83% of U.S. adults use streaming services (Jul 1, 2025): Read analysis
CFPB — Buy Now, Pay Later: Consumer Use of BNPL (Mar 2023, PDF) · 2025 BNPL Update (PDF)
“Click-to-Cancel” rule status: Washington Post coverage · WilmerHale analysis

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