Buy Now, Pay Later Holiday Shoppers Struggle to Pay Off Bills Amid Installment Due Dates
Many consumers who used to buy now and pay later to finance holiday shopping are now struggling to pay off bills that are coming due in installments. Buy now, pay later helped fuel record 14% growth in online sales last season, but shoppers may face difficulty covering payments. Credit card debt is at an all-time high, while delinquency rates have doubled in recent years, adding risk. Providers don't disclose BNPL default rates, though CFPB found users twice as likely to be late on other debts like loans.
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00:00 It's Benzinga and here's what's on the block.
00:02 Many consumers who use BuyNowPayLater to finance holiday shopping are now struggling to pay off
00:06 bills that are coming due as installments are owed. BuyNowPayLater helped fuel records 14%
00:11 growth in online sales last season, but shoppers may face difficulty covering payments.
00:15 Credit card debt is at an all-time high, while delinquency rates have doubled in recent years,
00:19 adding risk. Providers don't disclose BNPL default rates, although CFPB users found
00:24 users twice as likely to be late on other debts, like loans. While some rely on BNPL responsibly,
00:29 others find it encourages overspending beyond means and gets in the way of financial goals.
00:33 For all things money, visit Benzinga.com.