This holiday season, a significant number of shoppers are expected to utilize 'buy now, pay later' (BNPL) plans, driven by the need to manage personal finances amid inflation and high credit card debt. Adobe Analytics predicts that spending through BNPL services will increase by 11.4% compared to last year, amounting to approximately $18.5 billion from November 1 to December 31, with nearly $1 billion expected on Cyber Monday alone. The appeal of BNPL is particularly strong among younger consumers and those with low credit scores, as these services often require only soft credit checks and do not report to credit bureaus. However, consumer advocates warn of potential pitfalls, including the risk of overspending and accumulating debt, especially if payments are made with credit cards, which can incur additional interest and fees. Experts stress the importance of careful budgeting and tracking multiple BNPL transactions to avoid financial strain during the holiday season.
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