Why are more US shoppers struggling to repay 'buy now, pay later' loans?

Shoppers who opt to finance purchases through BNPL services tend to be younger than the average consumer, and a study from the Federal Reserve last year said Black and Hispanic women were especially likely to use the plans, which customers of all income levels are increasingly adopting. — AP

NEW YORK: More Klarna customers are having trouble repaying their "buy now, pay later" loans, the short-term lender said this week. The disclosure corresponded with reports by lending platforms Bankrate and LendingTree, which cited an increasing share of all "buy now, pay later” users saying they had fallen behind on payments.

The late or missed installments are a sign of faltering financial health among a segment of the US population, some analysts say, as the nation's total consumer debt rises to a record US$18.2 trillion (RM77.48 trillion) and the Trump administration moves to collect on federal student loans.