Gen Z is no longer drowning for purchase, but is never borrowed. But experts warn that this is a luxurious lifestyle trap

• About 30 million Gen zers are cut credit card Prefer to buy now, then do the services later to pay for suffering costs. Although the agility can bring, experts say some buyers can “trap some buyers during impulsive disintegration.

The love of young people to the procrastination is finally hitting a new stage: their finance.

About two of the five genuine zers refuse to pay their turn Luxury Bag or McDonald’s Delivery Rules, after checking and prefer to use instead Buy Now, Pay later (BNPL) services to pay in weekly or monthly parts. And for the first time these services even overlook Long-term popularity of credit cards.

BNPL finds a more flexible and simple way for prolonging purchases in multiple salaries, without collecting high-interest debt.

Still, for a generation Fights financial literacyOpening a love “Doom costs“Ways to use their ways with inflation stressors, the habit of using payment plans, warns that there can be a mask for an extreme majority game.

Buy now, how do you work later, and the gen z love him why

Gen Zersin forty-four percent, they now received their services last year later, he said. About 30 million young people in the United States and Sabrina Rozza are the equivalent of 30 million young people, one of them.

25-year-olds say Fortune Used Afterpay to finance $ 4,000 vacation to the Dominican Republic. He says a credit card says a “big alternative” to a credit card, and then he would gradually pay for six months.

“It definitely helped the budget. And as full transparency, then I did not save money only by credit card,” he says. “So he really gave more things, more to make a holiday I want to go.”

Rozza uses BNPL services to buy most of the most of their friends, mainly to buy clothes. They are not alone: ​​in today’s economy Half of the gen z feel Like BNPL, it helps to better manage their financial financial offices. Its predicted financial convenience and simple debt conditions are charming.

Gen Z: Read the subtle print

Popular Services, as ClearConfirm and subsequently slicing through a loan they purchased through a loan that can be repaid in interest-free payments.

However, subtle printing shows that it is definitely not always simple.

Their “Payments in 4” program is divided into four-term payments paid in both weeks in one credit account every two weeks (although This may change). Depending on the price and merchant, low payment may be required and the longer payment plans are up to 36% routes.

Moreover, any payment loss can take hexes.

It is great and large, customers tend to return the money to prevent any penalty. According to AfterPay, 98% of the purchases do not pay late payments and paid in 95% of part. So no gen z is probably not “Choking in debt“As the reports suggest, if they are not careful, they could have come to the habit of bite than they chewed.

However, financial experts are not sold to BNPL benefits

Inflation and market uncertainty shocked the economy, not a shock that the Gen Z is exploring new ways to shop. In fact, this year, 60% of Coachella’s ticket buyers preferred the payment plan system of the music festival – Board. Although the more shopping purchases of how much shopping have been made, they had to pay completely, how popular payment plan systems were made.

“Buy now, then encourages people to buy people over the pulse,” said Nuh Kerner, CEO of Financial Services Acorns Fortune. “It encourages people to increase.”

For consumers, it is dangerous for a fence on a purchase, to delay the price label to the next date; In fact, A study was found These buyers tend to spend 20% more when BNPL is offered. Buyers registered for BNPL loan at more than one time can quickly enter complex material problems, especially half popular BNPL companies.

Although credit cards have its own decks, they have their own decline, they offer internal protectors: they report to credit bureaus and often reward users with points or cash. But According to Afterpay51% of the Gen Z gives them the same number of young people who can help them better manage finances compared to “IICK” and traditional loans.

Basically, Kerner additives should save for what they want to buy because they can get people Collect debt without affecting the credit score-The easy to do.

“You should never spend more from you,” said, “A special wealth consultant in the Bank of Sinovus adds to Allyson Kiel.” It is a terrible place to be a credit card debt. Interest rates are incredible and if you find yourself in this trap, it can be so difficult to go out.

“If you need a need and need, you should wait,” he says.

This story was first displayed Fortune.com

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