Consumer credit card debt has hit an all-time high, leading some young consumers to turn to buy-now-pay-later (BNPL) services like Afterpay and Klarna. Federal Reserve Bank of New York data shows Americans owe $1.21 trillion on their credit cards, with a delinquency rate of 7.18 percent. Total household debt grew by $185 billion last quarter, reaching $18.39 trillion, possibly due to inflation. Despite financial anxiety, 25% of consumers plan to spend at least $1,000 this holiday season. Cash App Afterpay data indicates a rise in stress about finances and holiday expenses. BNPL services are seen as a way to manage budgets and offer flexibility to consumers. Late payments for BNPL services are on the rise, with the average loan amounting to $142. FICO is now considering incorporating BNPL data into credit scores for lending decisions.

Read more at Yahoo Finance: Consumers May Lean on BNPL for Holiday Spending Amidst Economic Uncertainty