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May 27, 2025

Why are more shoppers struggling to repay ‘buy now, pay later’ loans?

By CORA LEWIS
Associated Press

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Buy now, pay later plans generally let consumers split payments for purchases into four or fewer installments, often with a down payment at checkout.

NEW YORK — More Klarna customers are having trouble repaying their “buy now, pay later” loans, the short-term lender said last 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.


 
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