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.

  • FarFarAway@lemmy.world
    1·
    13 days ago

    They wouldn’t let me turn mine off. The first bank flat out said no, the credit union charged me $5 to draft $100 from my savings. If there wasnt $100 in the savings, they would charge me the $5 to take what was in my savings and the $25 overdraft to cover the rest. There were no other options.