Internal data shows member credit card balances are up more than 50% for Gen Z and millennial members since March 2022, when the Fed started raising interest rates.

Summary

Gen Z is increasingly relying on “buy now, pay later” (BNPL) services for holiday shopping, with spending projected to rise 11.4% this year, totaling $18.5 billion.

These services appeal to younger consumers with limited credit histories but can lead to overextension, as they lack centralized reporting and encourage overspending.

Experts warn of accumulating fees, particularly when BNPL plans are tied to credit cards.

With inflation and rising credit card debt already burdening Gen Z, consumer advocates caution that these services may worsen financial instability despite their convenience.

  • ntma@lemm.ee
    123·
    5 days ago

    It’s easy to spend money when it’s all digital. The younglings don’t use physical cash.

    • Ellen_musk_ox@lemm.eeEnglish
      4·
      4 days ago

      When is this magical time you think when everyone used cash the majority of the time?

      Because I’m 45 years old and it wasn’t in my adult life. I’ve had a debt card to my savings/checking since I was 15 years old. And I’ve had credit cards since I was 19.

      Half my friends bought their first homes right after the 2007 crash because mortgages were cheaper than rent. I’ve financed 4 vehicles. I currently have a mortgage.

      I’ve rarely used cash for anything in my life other than “vice/sin” (drugs, strip clubs) purchases in order to keep them more private.

      I don’t think your comment has any truth to it at all. Nobody’s been relying on cash to get them through most of their purchases since cheques became universal in the early 80’s.