Part 5/9:
Another critical factor contributing to Gen Z's financial plight is the rampant adoption of "Buy Now, Pay Later" (BNPL) schemes. These platforms have exploded in popularity as they promise an alternative to traditional credit, especially in a post-pandemic world where economic pressures are escalating. While these platforms can provide short-term relief by eliminating interest payments, they also lead to chronic debt as users often purchase non-essential items on credit.
The normalization of BNPL among young adults is linked to the financial habits they are developing during formative years. A staggering 43% of Gen Z missed a payment in 2021, emphasizing how the allure of immediate gratification can lead to long-term financial repercussions.