Holiday Debt Expected to Surge 40% This Year as Buy Now, Pay Later Use Skyrockets
• Holiday debt and buy now, pay later (BNPL) usage is up 40% compared to last year, indicating consumers are financially stretched • Financial analyst Ted Rossman believes the "holiday debt hangover could be particularly nasty this year" as savings dwindle and debt builds • While BNPL services seem easy and interest-free, late fees and lack of credit report visibility can push consumers deeper into debt • Nearly half of credit card holders carry a balance month-to-month; combined with high inflation and interest rates, this compounds financial troubles • With pandemic savings depleted and potential economic downturn ahead, rising consumer debt levels are a mounting concern