Zoomers are drowning in debt due to the growing popularity of the service "Buy Now – Pay Later". According to experts, over the past couple of years, the debt burden of the younger generation has increased by 50%. 

Analysts believe that the debt burden of the younger generation is primarily due to addiction to social networks, the cult of success and life here and now. Only then there is ignorance of credit obligations and low incomes.

Buy Now, Pay Later (BNPL) services have become a hit among Gen Z, offering the opportunity to purchase the desired products without paying the entire amount at once.

But how safe is this seeming freedom? Experts warn that BNPL services, although they look attractive, can lead to serious financial problems, especially in the face of rising inflation and record credit card debt.

What is the catch of "Buy Now, Pay Later" loans (BNPL)?

Hidden costs: BNPL companies often do not report loans and payment history to credit bureaus, unlike credit card companies. This creates the illusion of "free" money, but in fact, late payments can result in fines and interest that the buyer did not even suspect.

The Temptation to Overspend: When you don't have to pay the full price of an item right away, it's easy to be tempted to make more purchases than planned. This can lead to a situation where automatic payments for BNPL services accumulate, and the buyer loses control over their finances.

Increase in credit burden: Using a credit card to pay for BNPL plans further exacerbates the situation. The buyer faces interest on the credit card in addition to the interest and fees on the BNPL loan itself.

❗️Experts advise against using a credit card to pay for BNPL plans and keep a close eye on all your payments to avoid unpleasant surprises.

Adobe Analytics forecast for BNPL spending during the holiday season

According to Adobe Analytics, the 2024 holiday season is expected to see a significant increase in spending on Buy Now, Pay Later (BNPL) purchases.

Adobe Analytics predicts an 11.4% year-over-year increase in BNPL purchases. Between November 1 and December 31, shoppers will spend $18.5 billion on goods purchased using BNPL services.

It's important to note that Adobe Analytics' forecast is based on data on past purchases and current trends.Actual costs may differ from projected costs.