Walmart Partners with Affirm on Buy Now, Pay Later Option; Financial Experts Warn of Debt Risks
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Walmart is collaborating with Affirm to offer a "buy now, pay later" service at checkout. Customers can finance purchases of $144+ and pay in installments.
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Use of "buy now, pay later" services is soaring, up 42% on Cyber Monday. But half of users already have prime or near-prime credit scores.
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Financial experts warn the ease of installment loans could lead shoppers into debt. 18% of BNPL users have other delinquent accounts.
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National credit card debt has hit $1 trillion. Some shoppers are concerned Walmart's move could spark a debt crisis.
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On social media, many criticized the policy, worrying it could lead to overspending like the 2008 housing crisis. Some advised "stay away."