J.J. McCorvey is a business and economy reporter for NBC News.
Many consumers find buying now and paying later a godsend when cash is tight. Others are wishing they’d paid upfront to avoid pain later. Tia Whiteside, 27, knew she was spending more than she would have without buy now, pay later services — the popular loans that let borrowers split purchases into installments with little or no interest.
services have taken off among shoppers across income and credit levels for various reasons. Many are seeking cover from high credit card interest rates. Some, having burned through traditional credit options, are desperate for financial lifelines. Others are simply looking to better manage their cash flow. The fastest uptake has been among consumers 35 and younger, who represent more than half of
usage soars, financial experts and researchers have raised alarms about risky spending on the platforms, even though they can often be used responsibly. “I’m sure there are people who use it well, but on average, we feel it kind of replaces the credit card,” said Ben Lourie, an accounting professor at the University of California, Irvine. “People are consuming extra. There’s just no way around it.
users had higher credit card utilization rates and lower credit scores than non- services for designer clothes, handbags and Apple devices, Amy Baird, 39, was staring down more than $9,000 in debt. “It caught up to me,” said Baird, who lives in Dallas and works as a claims clerk for an insurance company. “I had put myself in a pretty big hole,” she said, adding that she found support in a subreddit focused on shopping addiction. Her boyfriend helped her secure a low-interest balance transfer card, making it easier to tackle the loans one provider at a time, she said.
services are set up in ways that can feed habits his clients are working to break. “You don’t really have to do anything other than click ‘purchase,’” he said. That frictionlessness can be especially tempting “on days when people are tired or stressed and you just have less willpower,” said Mahoney, who works mainly with millennial consumers.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Best Buy has a refurbished MacBook for $580, and it’s a good buyThis refurbished MacBook deal from Best Buy is incredible and you have to see it to believe it.
Read more »
Buy Greenworks tools on sale at Best Buy and save plenty of greenHead over to Best Buy to discover money saving deals on Greenworks outdoor tools and get ready for spring.
Read more »
What to buy, and not buy, in AprilGreat sales on outdoor and cleaning items
Read more »
Record Number of Americans Using 'Buy Now, Pay Later' Apps Amid Inflation SurgeA record number of Americans have been using “buy now, pay later” apps amid the surging inflation seen in Biden’s economy. Around 6.5 percent of Americans, roughly 15 million, have been using BPNL apps to pay for groceries since last year. Of those using the apps, around 5.4% were low-income Americans. BPNL loans are short-term loans with fixed payments at little to no interest. Many Americans have begun using BPNL loans for various items. Inflation has been trending upward for the past three months.
Read more »
Biden Economy: Record Number of Americans Using ‘Buy Now, Pay Later’ AppsSource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Read more »
Some Canadians Buy Crypto Just to Pay Ransoms: SurveyCybercriminals are driving cryptocurrency adoption in Canada
Read more »