15.6 C
Monday, February 26, 2024

Youth in USA getting trapped in debt with ‘buy now, pay later’ scheme


Share post:


The youth in the USA are getting enticed in the trap of debt because of the ‘buy now, pay later’ (BNPL) scheme and their sibil score is deteriorating as well. Post the COVID-19 pandemic, such companies providing small loans have increased, and in the greed of attractive and easy conditions of debt and it being interest free, the youth are spending more than their income. According to a survey of the Financial Technology Association, 40% of the BNPL users take loans from many companies, and almost 1/3rd of them spend more than their income and are unable to pay the loan back.

As per a report of the Federal Reserve, in 2021, 18% of the users from the age group of 18-29 could not pay the loan amount back, and 11% were late in paying back at least one instalment.

The Consumer Financial Protection, in its report, has said that in 2021, 5 BNPL companies provided a loan of a total of around 2 lakh crore rupees to 18 crore people, which was 10 times more than 2019. People are still not aware of the hidden dangers associated with BNPL.

Sonakshi Datta
Sonakshi Datta
Journalist who wants to cover the truth which others look the other way from.

Related articles

18 reasons why Modi is not a dictator but a saviour of India

Recently a social media influencer based in Germany made a YouTube video in which he criticized and labeled...

Tier 2 and 3 cities will define new modernity for India: Author Shashank Mani

The tier 2 and tier 3 cities are abode to majority of Indians, but often, this ‘middle’ of...

Is Feydhoo Finolhu Island in Maldives housing a Chinese military outpost?

China has been aggressively pushing its geopolitical strategy 'String of Pearls' in the Indian Ocean Region (IOR). Maldives is...

Man who put up ‘Gyanvapi Mandir’ sticker tortured by Varanasi police, implicated in false cases

In early February, it was reported that a man belonging in Varanasi, Uttar Pradesh, Roshan Pandey, who is...