Reported 5 months ago
The article discusses the impact of phantom debt on consumer credit, particularly related to "buy now, pay later" (BNPL) plans. US credit card debt is at $1.12 trillion, with 15% of Gen Z consumers maxing out their credit cards. Macy's reported an 8.9% increase in credit card delinquencies, and Splitit CEO Nandan Sheth highlights the issue of "phantom debt" in credit markets due to BNPL plans not being closely monitored by credit agencies. Sheth emphasizes the need for more responsible lending in the BNPL space, especially after the Consumer Financial Protection Bureau announced plans to regulate BNPL like credit cards.
Source: YAHOO