The Conservative Cave
Current Events => Economics => Topic started by: Ptarmigan on November 28, 2023, 08:46:34 PM
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Record Cyber Monday Sales Fueled By 'BNPL Craze' As Consumers Spend Beyond Their Means
https://www.zerohedge.com/markets/record-cyber-monday-sales-fueled-bnpl-craze-consumers-spend-beyond-their-means
The 'buy now, pay later' (BNPL) craze is sweeping across America as debt-ridden consumers tap another credit lifeline that has propelled record sales for Black Friday and Cyber Monday. This trend has become another financial crutch for consumers hooked on spending beyond their means.
Data from Adobe Analytics showed that more Americans than ever relied on short-term loans, allowing installments over weeks and/or months for purchase items on Cyber Monday.
Online consumer spending skyrocketed 9.6% from $11.3 billion yesterday, surpassing Adobe's initial expectations of a 6.1% increase to around $12 billion.
The report noted consumers purchased over $940 million worth of goods through BNPL services. This was a 42.5% jump compared to figures last year and far exceeded Adobe's earlier estimate of 18.8%.
Cyber Monday sales are due to buy now, pay later (BNPL). I wonder how many will be able to pay it back as many are in debt.
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I think th BNPL has been an incentive since credit cards were introduced. A further hook is the zero interest rate for several months. I don’t think a lot of people read the fine print and see what they are stuck paying if the balance is not paid off in the allotted time.
Credit is a double edged sword if it’s used wisely it’s a good thing, but it can burry those who misuse it.