Part 5/10:
However, the BNPL model is not without its pitfalls. While termed "interest-free," many BNPL services impose fees when payments are late, which can lead to a cascade of compounding debt. In this context, the growth of BNPL has paralleled an uptick in credit card defaults, hammering home that these services do more than replace traditional credit; they often exacerbate the existing issue of consumer debt.