A financial crisis may be brewing with Buy Now Pay Later, or BNPL, users, a new survey shows.
Not only do shoppers who use the short-term financing tend to borrow and spend a lot, but they’re having difficulty keeping up with debt payments, according to a survey of 2,223 U.S. adults between Aug. 31 and Sept. 3 by business intelligence firm Morning Consult.
More than two out of five users carry BNPL debt and one-quarter of them missed a payment last month, the survey showed. Another one-quarter said they paid late fees; 27% saw a decline in their credit score;f 22% interacted with a debt collector.
Medora Lee | USA TODAY