Holiday Shoppers Embrace Buy Now, Pay Later Plans Despite Growing Consumer Debt Risks
• Consumers expected to increasingly use "buy now, pay later" (BNPL) payment plans for holiday shopping, but analysts warn of growing consumer debt risk • BNPL loans allow shoppers to make a down payment at checkout and pay the remainder in installments over weeks/months • Loans can help consumers budget but can also lead to "loan stacking" across multiple lenders and excessive debt • BNPL loans often go unreported to credit bureaus, masking borrowers' creditworthiness and debt levels • Analysts worry opacity around BNPL debt and increasing use, especially by younger and lower-income shoppers, compounds financial risk