In mid-2020 when the bottom of the market was falling out, I s | Jazzhands FTN

In mid-2020 when the bottom of the market was falling out, I said on FTN that the next phase of financialization would be payment plans for ordering a pizza. Unfortunately, I wasn't wrong:

In California alone, 91% of all consumer loans issued last year (which include car, boat, RV, home improvement, and personal loans) were buy now, pay later loans AKA point-of-sale loans from popup fintech services such as Klarna, Sezzle, Zip (formerly Quadpay), Afterpay and Affirm.

It gets worse:

Zoomers have fallen in love with these loans, spending 925% more now through point-of-sale services than in January 2020. Over $20 billion was spent through buy now, pay later services.

43% of Gen Z users have missed at least one payment, while 30% missed at least two payments, according to a survey by Credit Karma.

Driven by social media influencers:

Coupling nearly instantaneous loans with an influencer-addled social media culture that prioritizes exorbitant spending and normalizes debt could be further jeopardizing their financial futures through just four easy payments.

One video, posted in September last year by TikTok user Lillian Bradford, features her in a faux-fur coat and gold earrings. “I was fully under the impression that I only owed maybe $300 max on Afterpay,” the text reads. Then a screenshot pops up with her balance: more than $2,000.

https://www.sfgate.com/news/article/influencers-lead-Gen-Z-into-debt-17142294.php