This holiday season is set to see a significant increase in the use of "buy now, pay later" (BNPL) plans, with Adobe Analytics predicting an 11.4% rise in spending through these services compared to last year. Shoppers are expected to spend around $18.5 billion using BNPL from November 1 to December 31, with nearly $1 billion projected for Cyber Monday alone. The appeal of BNPL lies in its accessibility, particularly for younger consumers or those with low credit scores, as it often involves soft credit checks and does not impact credit scores. However, consumer advocates warn of potential pitfalls, including the risk of overspending and accumulating debt, especially when using credit cards to fund BNPL payments. Experts advise caution, highlighting that while BNPL can facilitate purchases, it may lead to financial strain if not managed carefully. Retailers benefit from increased sales when BNPL options are available, but consumers should remain vigilant about their spending habits.
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