From CNBC:

Many Americans are struggling to pay off buy now, pay later bills they racked up over the holiday season. This service helped fuel a boom in overall online spending, topping out at $222 billion from November through December, as people used Klarna, PayPal and Affirm to split purchases into interest-free payments. Delinquency rates are almost double pre-pandemic levels. Affirm states that it writes off unpaid loans within 120 days, and finds traditional credit metrics less relevant. Klarna and Affirm do not disclose delinquency rates. Klarna’s global default rate is less than 1%. People in debt from buy now, pay later typically had trouble managing other debts. Some shoppers are grateful for the service, while others find it dangerous. Klarna user Hensley Resiere nearly overdrafted on several occasions until she was able to afford own to various bills.



Read more: Shoppers deal with holiday debt