Summary

Gen Z is increasingly relying on “buy now, pay later” (BNPL) services for holiday shopping, with spending projected to rise 11.4% this year, totaling $18.5 billion.

These services appeal to younger consumers with limited credit histories but can lead to overextension, as they lack centralized reporting and encourage overspending.

Experts warn of accumulating fees, particularly when BNPL plans are tied to credit cards.

With inflation and rising credit card debt already burdening Gen Z, consumer advocates caution that these services may worsen financial instability despite their convenience.

  • Ensign_Crab@lemmy.world
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    14 days ago

    When you think there’s no future, there’s no need to plan for one.

    Gen Z knows that they’re gonna have bigger problems than debt.

    • givesomefucks@lemmy.world
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      14 days ago

      One big recent consequence is it destroys credit short term, like less than a decade.

      It’s recoverable, but every one counts as a new line of credit, which automatically gets closed about a year after payment.

      So unless you also have a lot of zombie credit cards, it’s going to keep debt utilization waaaay up, number of accounts waaat up, and keep average age of accounts low.

      This snowballs, especially if they ever do but a house. If they day ever comes, they’re going to lose alot of money again.

      It’s like experiencing turbulence on a place so you scream YOLO and start playing Russian roulette.

      If the plane goes down, it doesn’t matter. If it’s normal no big turbulence, then it’s just as much an increase in risk as playing on land.

      They assume they’ll have bigger problems, and they may be right. But it’s should still be concerning.

      We got a while before kids are unironically bumping this tho

      https://www.youtube.com/watch?v=vG1CuunXLsI

      • Ensign_Crab@lemmy.world
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        14 days ago

        This snowballs, especially if they ever do but a house

        They know this will never happen. They’re not buying houses. They’re renting until they die on an overheated planet that no one wants to do anything about. Where one party rolls coal and the other pretends that the inflation reduction act makes up for the harm caused by the record oil production they brag about.

        They know they’re fucked, and there’s no reason not to take on as much debt that they can’t pay back as possible.

        • givesomefucks@lemmy.world
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          14 days ago

          They assume they’ll have bigger problems, and they may be right. But it’s should still be concerning.

        • RangerJosie@lemmy.world
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          14 days ago

          Actually yes. Yes it does.

          The poor are poor cuz they don’t work hard.

          Can’t budget to help the homeless cuz some of them might trade food stamps for drugs.

          If you didn’t want that baby you should have kept your lega closed.

          Blaming the victim is as American as genociding the indigenous. Happens all day every day. Because this is the bad place.

    • Blackmist@feddit.uk
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      14 days ago

      I’m not sure because it definitely is.

      The whole selling point of services like Klarna is they don’t show up on your credit checks, meaning you can very easily take on too much debt.

  • lychee🍒@lemmy.blahaj.zone
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    14 days ago

    In this age where you can quickly spend thousands online (or even in person) without having to actually watch any of it disappear, and corporations are hiring psychologists to make their services and platforms as addicting as possible, you’re gonna get a lot of this

    I see everyone in the comments saying that Gen Z have checked out and are waiting for the end but I really don’t think so.

    I think it’s never been easier to manipulate a person to separate them from their money and things are deliberately designed that way. Big shiny upgrade now buttons, services forcing you onto 7 day free trials for premium plans upon signing up, expensive yearly subscriptions for products that ten years ago would have been unthinkable as anything