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.

  • @seaQueue
    33•1 month ago

    And meanwhile your bank or brokerage gets to play with that money for a real investment return

    • @Draces
      24•1 month ago

      And the wage earner’s taxes will be used to bail them out when they make a bad bet

      • @seaQueue
        18•1 month ago

        Yeeeup. Socialism for me, austerity for thee