The Rising Holiday Debt Hangover: US 'Buy Now, Pay Later' Splurges

As U.S. credit card balances reach record levels and defaults rise, more Americans are turning to "buy now, pay later" services to stretch their holiday budgets. While these services can be helpful for some shoppers, consumer advocates are concerned about the potential for cash-strapped individuals to accumulate more debt with high interest rates. Debt counseling services have seen a significant increase in demand, and credit analysts warn that the holiday debt hangover could be particularly severe this year. While providers claim to offer alternatives to high-cost credit cards and conduct credit checks, data shows that the typical borrower is already financially vulnerable. These loans can quickly become burdensome, leading to spiraling costs and potential credit score damage.