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.

  • @captainlezbian
    3•9 hours ago

    Also I’ll add that there are some things that feel wrong that they just aren’t prepared for you to pay cash for. My audiologist was shocked when I asked him to put my hearing aids on a single debit payment and we had to break it up into three payments. My car was two payments one a day after the first. I was raised to save up for expenses where possible and avoid debt for anything but cars, houses, and education (and hoo boy did I get a lecture on expected income vs price of degree).

    And I have to say that these issues are a combination of systemic and cultural. You don’t get this being so common with it being an individual failing, and you don’t get the situations I’ve described or the issues with debt avoiders getting screwed when we look to get a rare responsible loan without it being systemic. But also you don’t get people casually splurging with money they don’t have without it being cultural. Fiscal responsibility isn’t fun or sexy (though actually I have found a casual partner more attractive for the fact that she has retirement savings and minimal debt), but after decades of propaganda encouraging wasteful lifestyles and fiscal irresponsibility I think it’s time we engage in a multi prong approach to this problem. And that very much includes teaching the average American how to live a more frugal lifestyle while also making sure that they can get what they need (housing, transit, education, community participation, cultural enrichment, etc) at an affordable cost to their income.