LendingTree's latest report highlights a troubling trend among Buy Now, Pay Later (BNPL) users, with one-third admitting to late payments in the past year, an increase from the previous year. This issue affects nearly half of all BNPL users at some point. The report also reveals the broad adoption of BNPL services, with 43% of Americans using them, particularly popular among Gen Z, millennials, and parents with young children. Additionally, more users are turning to BNPL loans as a financial bridge between paychecks, indicating a reliance on these services for regular financial management. The difficulty of returning items purchased through BNPL and widespread regret over BNPL purchases further complicates the picture. Despite these challenges, the report suggests that BNPL remains a potentially valuable financial tool if used wisely, recommending strategies for managing BNPL loans responsibly.
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