In both the case of the phone and the Peloton, it allows someone who can't afford the item to pay for it on an installment basis. On an individual level that access to credit might be useful, but it's another form of leverage which is not always a great indicator.

In fact, if people are making use of that option unusually often, economists get worried. Prior to a recession, consumers often feel more confident (and take on more financial obligations) than they have the resources to keep up with.