PALM BEACH COUNTY, Fla. — This month, we've sought your thoughts on the challenges surrounding credit card debt, and we're making it a priority to address your questions.
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During my research, a significant concern emerged regarding the increasing reliance on popular "buy now, pay later" (BNPL) services for financing purchases.
Klarna, a leading BNPL provider, reported a troubling rise in consumer credit losses, soaring to 17% in the first quarter compared to the same period last year. This trend of borrowers falling behind on their BNPL payments is becoming alarmingly widespread.
In fact, data from LendingTree shows that last month, a striking 41% of BNPL users admitted to making late payments within the past year, an increase from the previous year’s figures.
I reached out to consumers to understand their motivations for utilizing BNPL options. Here’s what some had to say:
“It’s just easy, you pay it and then it’s what, four different payments. Nothing big? Dresses and plane tickets I’ve done as well.”
“I like it. I use it a lot for concert tickets, clothes. I like it. I use it a lot.”
The appeal of BNPL lies in its promise of short-term, low-cost financing that seems to eliminate the traditional pitfalls of credit cards. However, financial experts are raising important red flags regarding this growing trend.
As we continue to explore these concerns, it's vital to remain informed about the implications of payment choices, ensuring decisions support financial health in the long run.
We want to work to find solutions for you. Click below to submit your questions:
Consumer
STRUGGLING WITH CREDIT CARD DEBT? We want to hear from you!
Tune in to WPTV tomorrow, May 21, for our coverage of navigating credit card debt as we seek solutions for you.
