Buy now, pay later programs are becoming a lifeline for Americans needing necessities. NerdWallet reports that 25% of Americans have tried these programs, with a third using them for essentials. The CFPB has introduced rules to protect consumers, mirroring credit card safeguards. Unlike credit cards, these services typically have no interest, breaking payments into manageable installments. However, consumer advocates worry this could lead to overspending and debt. Despite their growth, credit cards remain the dominant tool, with 66% of Americans using them in the past year. The Federal Reserve highlights a rise in maxed-out credit card users, a trend reversing pandemic-era debt relief aided by stimulus checks.
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