Financial experts are raising alarms about the potential pitfalls of Buy Now, Pay Later (BNPL) services, especially as the holiday shopping season approaches. While these payment options may seem convenient, particularly for younger consumers like Gen Z, they can lead to what experts term "stealth debt." This occurs when shoppers, drawn in by the allure of manageable installment payments, fail to account for multiple small debts accumulating over time. Many individuals, particularly those just starting their financial journeys, may not realize the impact these payments can have on their overall budget. A recent Credit Karma report highlights that while Gen X holds the most credit card debt, Gen Z is experiencing the fastest growth in this area. As holiday spending ramps up, experts advise consumers to differentiate between wants and needs, and to consider saving for larger purchases rather than relying on BNPL options. This proactive approach can help mitigate future financial strain.
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