Buy now, pay later is the worst thing for consumers since payday loans

BNPL usage soared 43% in one year with 40% of users missing payments, adding to America's $1.12 trillion credit card debt crisis and rising delinquencies

And instead of thinking about the total cost, consumers focus on the $25-a-week illusion. It’s predatory because it masks the risk. It convinces people they can afford things they absolutely cannot.  Ted Jenkin is president of Exit Stage Left Advisors and partner at Exit Wealth.

Let’s cut through the hype and look at the facts. According to a 2023 report by TransUnion, BNPL usage soared 43% in a single year. Roughly 40% of users have missed at least one payment, and those missed payments often come with hefty late fees or aggressive collections. A 2023 CFPB report indicates that among consumers in households charged an insufficient funds (NSF) fee in the past year, 85% were also charged an overdraft fee.