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While retail sales are strong, typically an indication of a healthy consumer, an industry economist is deeply concerned about how consumers will pay it all off when the bill comes. 

Bankrate senior industry analyst Ted Rossman’s concerns were heightened, in particular, after noticing an uptick in usage for buy now, pay later (BNPL) services as consumers battle growing debt obligations. 

These payment services were up 40% year over year on Black Friday and Cyber Monday, according to data from Adobe. 

This uptick suggests that “a lot of people are close to the edge,” and it’s one reason why Rossman believes the “holiday debt hangover could be particularly nasty this year.”

“I think the substantial surge in BNPL usage (on top of already explosive growth in recent years) shows how many people are looking for quick, affordable financing,” he said. 

These services like Klarna or Afterpay are advertised as interest-free loans that can be paid in weekly or monthly installments.

And while it can help ease cash-flow issues, financial experts say there are hidden risks when shoppers rely on the services too much.

“While one could use these plans to their advantage, I do worry theyre too easy sometimes, and there isnt enough visibility on credit reports, and sometimes people can trick themselves into spending too much,” Rossman said.

For example, four $50 payments don’t sound like a lot, but Rossman said it “conceals the fact that its really $200, and you may already have multiple similar plans running with different providers.” 

Consumers can hit late fees if they don’t have the funds to cover the installments, pushing them deeper into a hole.  

Credit cards can be a great tool when they are paid in full and consumers maximize rewards. However, only about 53% of cardholders do so.

For the 47% who carry a balance month to month, credit card debt can be a big problem. 

What’s worse, balances and rates “have never been higher,” he said. 

Several years of high inflation and high interest rates have “eroded a lot of households savings and buying power.” If families are stacking more debt on top of that during the holiday season, it “poses trouble at least at the household level,” he noted. 

Rossman noted that any excess savings from the pandemic are pretty much gone at this point, “so I worry the rising debt trend could catch up to people, especially if the job market takes a turn for the worse.”

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Helicopter carrying Hindu pilgrims crashes in India, killing seven people

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Helicopter carrying Hindu pilgrims crashes in India, killing seven people

A helicopter carrying Hindu pilgrims has crashed in India, killing seven people on board.

The accident happened within minutes of the helicopter taking off, officials said, on what should have been a 10-minute flight.

The helicopter was flying to Guptkashi, a prominent Hindu pilgrimage site in the Himalayas, from Kedarnath temple town in the northern Indian state of Uttarakhand.

It comes three days after an Air India flight crashed less than a minute after taking off from Ahmedabad airport in northwestern India, killing at least 270 people.

The helicopter, which was operated by private helicopter service Aryan Aviation, went down in a forested area several miles from the Kedarnath pilgrimage route at around 5.30am local time.

Officials said the crash was believed to have been caused by poor weather conditions.

Authorities say they have launched a search and rescue operation and are expected to review operational protocols for flights in the region.

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The dead include the pilot and pilgrims from the neighbouring state of Uttar Pradesh and western states of Maharashtra and Gujarat, according to officials. The bodies were badly burned in a fire that followed the crash, they said.

Smoke and debris at the crash site. Pic: Reuters
Image:
Smoke and debris at the site. Pic: Reuters

Tens of thousands of pilgrims visit Kedarnath, which is home to one of the four most sacred Hindu temple shrines, each summer. Many use helicopter services due to the difficult mountainous terrain.

Helicopter mishaps are not uncommon in the region, where sudden weather changes and high-altitude flying conditions can pose risks.

Earlier this month, a helicopter operating in the Kedarnath Valley made an emergency landing shortly after taking off on a highway due to a technical fault. The pilot was injured but all five passengers on board were unharmed.

In May, a helicopter crashed in Uttarkashi district, killing six people, including the pilot. One person survived.

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Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

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Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil scraps crypto tax exemption for small traders, enforces flat 17.5% rate across all gains, including self-custody and offshore holdings.

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Sports

Ohtani blasts two HRs to halt 10-game drought

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Ohtani blasts two HRs to halt 10-game drought

LOS ANGELES — Shohei Ohtani hit two homers in an 11-5 win over the San Francisco Giants on Saturday night, emphatically ending the three-time MVP’s longest homer drought since joining the Los Angeles Dodgers.

Ohtani led off the bottom of the first with his 24th homer, hammering Landen Roupp‘s fourth pitch 419 feet deep into the right-field bleachers with an exit velocity of 110.3 mph.

The slugger had been in a 10-game homer drought since June 2, going 10-for-40 in that stretch with no RBIs, although he still had an eight-game hitting streak during his power outage.

Ohtani led off the sixth with his 25th homer, sending Tristan Beck‘s breaking ball outside the strike zone into the bleachers in right. He also moved one homer behind the Yankees’ Aaron Judge and Seattle’s Cal Raleigh for the overall major league lead.

Dodgers fans brought him home with a standing ovation as Ohtani produced his third multihomer game of the season and the 22nd of his career.

Ohtani reached base four times and scored three runs in his first four at-bats, drawing two walks to go with his two homers.

Ohtani hadn’t played in 10 straight games without hitting a homer since 2023 in the final 10 games of his six-year tenure with the Los Angeles Angels.

Ohtani had slowed down a bit over the past two weeks after he was named the NL Player of the Month for May with a formidable performance, racking up 15 homers and 28 RBIs.

The Associated Press contributed to this report.

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