Buy now, pay later (BNPL) plans have surged in popularity among U.S. consumers, now the second-most used form of credit. As households grapple with rising costs, many turn to BNPL to manage everyday expenses. However, the ease of use and lack of visibility on credit reports make BNPL a double-edged sword. Federal regulators are stepping in, aiming to introduce consumer protections akin to those for credit cards. This move could standardize the disparate BNPL landscape, offering more predictability and safety for users. With credit card debt remaining stubbornly high, experts advise consumers to fully understand BNPL terms before committing.
BNPL plans are the second-most used form of credit, reshaping American spending habits.
Consumer Credit, Financial Regulation
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