Exploring the Rise of Buy Now, Pay Later Loans for Concert Tickets: Understanding the 'Funflation' Trend
Many Americans have embraced the practice of using buy now, pay later loans to finance big-ticket purchases, such as tickets for live concerts and events. The cost of attending live concerts has been on the rise, with ticket prices increasing due to the popularity of tours by major artists like Taylor Swift and Beyoncé. This trend, known as "funflation," has led to a 3.9% increase in admission fees for movies, theaters, and concerts in the past year, according to the Bureau of Labor Statistics.
A recent survey conducted by LendingTree found that 23% of respondents have used buy now, pay later loans to cover the costs of concerts or festivals. Younger generations, particularly Generation Z and millennials, are more likely to utilize these loans for event expenses, with 37% of Gen Z and 35% of millennials reporting their use. In comparison, only 19% of Gen Xers and 3% of baby boomers have used buy now, pay later loans for concert purchases.
Matt Schulz, chief credit analyst at LendingTree, noted that younger Americans are more familiar with buy now, pay later loans and often use them for concerts and festivals due to their current stage in life. He advised concertgoers to budget for event expenses and create a savings fund specifically for such occasions. While buy now, pay later loans offer the convenience of spreading out payments without interest, they may lack the same protections as credit cards in case of issues with the event.
Buy now, pay later plans vary in terms of repayment terms and fees. While most plans involve four installment payments, some may offer longer repayment periods with an annual percentage rate of up to 36%. Additionally, late or rescheduled payments could incur fees of up to $15 or 25% of the purchase value. It's important for consumers to understand the terms and potential costs associated with buy now, pay later loans before using them for concert expenses.