NEW YORK—A financial crisis may be brewing with buy now, pay later, users, a new survey indicates.
Not only do shoppers who use short-term financing tend to borrow and spend a lot, but they’re having difficulty keeping up with debt payments, USA Today reported. But it should also be noted CUToday.info has included a number of similar warnings over the past year.
More than two out of five users carry buy now, pay later debt and one-quarter of them missed a payment last month, according to a survey conducted by Morning Consult. Another one-quarter said they paid late fees; 27% saw a decline in their credit score and 22% interacted with a debt collector, USA Today stated in its analysis.
‘Figures Could Rise’
“If their personal debt situation worsens, these figures could rise, creating real problems for these users at a time when interest rates are already high,” said Morning Consult financial services analyst Jaime Toplin.
The warnings around trends in BNPL aren’t new. As CUToday.info reported in May of 2022, some 18 months ago, LendingTree also released an analysis that expressed concerns around BNPL and delinquencies.
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