As the holiday season approaches, Gen Z is increasingly relying on Buy Now, Pay Later (BNPL) services, leading to a concerning rise in debt. A recent survey by the financial literacy app Frich reveals that Gen Z's use of BNPL options, such as Klarna, has surged by 31% compared to previous years, with credit card debt rising by 49% and late fees by 14%. The phenomenon, dubbed "Klarna Week," highlights the financial pressures young people face during the holidays, as many feel anxious about their spending habits. Despite the appeal of BNPL services, which promise interest-free payments if made on time, the reality is that many users struggle to keep up with installment payments. Experts warn that these services can create a false sense of security, leading to unsustainable financial habits. With over half of Gen Z feeling more anxious about holiday shopping this year, the need for better financial education and sustainable budgeting practices is more critical than ever.
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