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.”
Hamas’s armed group has claimed it has lost contact with two hostages as a result of Israel’s operations in Gaza – after it called on air deployments to be stopped for 24 hours.
In a statement, Hamas’s armed al-Qassam Brigades said it had demanded that Israel halt air sorties for 24 hours, starting at 6pm, in part of Gaza City, to remove the hostages from danger.
It comes a day before Israeli Prime Minister Benjamin Netanyahu is due to meet US President Donald Trump and as the number of those killed in Gaza surpasses the 66,000 mark, according to the enclave’s Hamas-run health ministry.
Its figure does not differentiate between civilians and fighters.
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Volunteer nurse’s video diary of Gaza horrors
A total of 48 hostages are still being held captive by Hamas, the militant group which rules Gaza, with about 20 believed by Israel to still be alive. A total of 251 hostages were taken on 7 October 2023, when Hamas launched an unprecedented attack on Israel which killed 1,200 people.
Situation on the ground
In Gaza, a war-torn enclave where famine has been declared in some areas and where Israel has been accused of committing acts of genocide – which it has repeatedly denied – the almost two-year war raged on.
On Sunday, the number of those killed rose to at least 21 as five people were killed in an airstrike in the Al Naser area, local health authorities said, while medics reported 16 more deaths in strikes on houses in central Gaza.
The Civil Emergency Service in Gaza said late on Saturday that Israel had denied 73 requests, sent via international organisations, to rescue injured Palestinians in Gaza City.
Israeli authorities had no immediate comment. The military earlier said forces were expanding operations in the city and that five militants firing an anti-tank missile towards Israeli troops had been killed by the Israeli air force.
In Monday’s White House meeting, President Trump is expected to share a new 21-point proposal for an immediate ceasefire.
His proposal would include the release of all hostages within 48 hours and a gradual withdrawal of Israeli forces from the Palestinian enclave, according to three Arab officials briefed on the plan, the PA news agency reports.
A Hamas official said the group was briefed on the plan but has yet to receive an official offer from Egyptian and Qatari mediators. Hamas has said it is ready to “study any proposals positively and responsibly”.
Mr Trump, who has been one of Israel’s greatest allies, said on Sunday there is “a real chance for greatness in the Middle East”.
It is unclear, however, what Mr Trump was specifically referring to.
He said in a Truth Social post: “We have a real chance for Greatness in the Middle East. All are on board for something special, first time ever. We will get it done.”
On Friday – the same day a video of diplomats walking out on Mr Netanyahu during his address to the United Nations went viral – Mr Trump said he believed the US had reached a deal on easing fighting in Gaza, saying it “will get the hostages back” and “end the war”.
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Diplomats walk out as Israeli PM speaks at UN
“I think we maybe have a deal on Gaza, very close to a deal on Gaza,” the US president told reporters on the White House lawn as he was leaving to attend the Ryder Cup.
Mr Trump has repeatedly claimed an agreement to end the war was imminent, only for nothing to materialise.
Weeks ago, he said: “I think we’re going to have a deal on Gaza very soon.”
A person has been killed and several others injured after a mass shooting and fire at a Mormon church in Michigan, police have said.
Authorities said at a news conference that the suspect was shot dead by police officers, and that nine others were injured.
Two of those were said to be in critical condition, Grand Blanc Township Chief William Renye told reporters.
Image: Flames and smoke rising from the Church of Jesus Christ of Latter-day Saints in Grand Blanc. Pic: Julie J, @Malkowski6April / AP
He added that the suspect was a 40-year-old man from Burton, who drove his vehicle into the church and began firing rounds at the hundreds of people attending Sunday service.
The suspect used an assault rifle and deliberately started the blaze, Chief Renye said, before adding that officers believe they will find additional victims in the fire.
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Image: Pics: AP
The incident took place at around 11am local time at the Church of Jesus Christ of Latter-day Saints in Grand Blanc, about 50 miles north of Detroit.
In a statement on Sunday morning, Grand Blanc Township Police Department added that the church was “actively on fire” and urged the public to avoid the area.
Michigan governor Gretchen Whitmer said in a statement that “my heart is breaking for the Grand Blanc community” after the shooting.
She added: “Violence anywhere, especially in a place of worship, is unacceptable. I am grateful to the first responders who took action quickly.”
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Genesee County sheriff Christopher Swanson said at around 12.20pm (5.20pm in the UK) that the “entire church is on fire”, and confirmed that people who were at the church have been evacuated.
Around 20 minutes later, the police department said the fire had been contained.
Image: The incident took place at the Church of Jesus Christ of Latter-day Saints in Grand Blanc
US attorney general Pam Bondi also confirmed the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives are responding to the incident.
US President Donald Trump said on Truth Social that “the suspect is dead, but there is still a lot to learn”, before saying the shooting “appears to be yet another targeted attack on Christians in the United States of America”.
He added: “PRAY for the victims, and their families. THIS EPIDEMIC OF VIOLENCE IN OUR COUNTRY MUST END, IMMEDIATELY!”
In the wake of the shooting and fire, the New York Police Department said it would deploy officers to religious institutions across the city “out of an abundance of caution”.
The incident occurred the morning after Russell M Nelson, the oldest-ever president of The Church of Jesus Christ of Latter-day Saints, died at 101.
Shootings reported in North Carolina, New Orleans, Texas
Meanwhile, authorities responded to a mass shooting at a coastal town in North Carolina late on Saturday, where three people were killed.
At least eight others were injured in that incident, where someone opened fire from a boat into a crowd at a bar.
Another shooting took place at a south Texas casino early on Sunday, with seven people shot and two killed.
A woman was also killed, and three others were injured in Bourbon Street, New Orleans, early on Sunday after a shooting.