📌 Introduction
"₹0 Down. No Interest for 3 Months."
Sounds like a dream deal? For many Gen Z consumers, Buy Now, Pay Later (BNPL) and instant loans are just another app notification away.
But here’s the catch:
What begins as a convenient purchase often snowballs into a debt spiral that’s hard to exit.
🧠 1. Why Gen Z Loves Instant Credit
📱 App-First Lifestyle: From swiping to shopping, everything is digital
⚡ Instant Gratification: The need for NOW overrides future planning
💳 Low Traditional Credit Access: BNPL seems easier than bank loans
🧍♀️ Peer Pressure: Social media fuels “aspirational” purchases
💬 Influencer Culture: Trends become necessities overnight
⚠️ 2. The Hidden Dangers
BNPL, UPI Credit, and instant loan apps often market to the under-25 demographic—but with limited financial literacy, the risks include:
💸 Over-borrowing for non-essentials
⏳ Missed repayments = mounting penalties
📉 Falling credit scores before age 25
🧾 Poor budgeting habits
🚫 Emotional stress from hidden debts
🔄 Real-Life Scenario:
Ananya, 23, bought a phone via a BNPL app.
Later, she added clothing, courses, and accessories—all "easy EMIs."
Within 4 months, she had ₹28,000 in dues across 3 apps—no stable income, no repayment plan.
📊 3. How This Impacts Financial Future
🔐 Lower creditworthiness = rejection of real loans (car/home) later
🧠 Trains your brain to avoid delayed gratification
📚 No savings mindset = financial fragility
😰 Burnout from balancing multiple short-term debts
✅ Vizzve’s Solutions for Gen Z
✔️ Use BNPL only for emergencies, not indulgences
✔️ Stick to 1 app or card at a time
✔️ Track your spending with Vizzve's Smart Budgeting Tools
✔️ Avoid buying items that you can't repay in 30 days
✔️ Build credit the right way—through small, timely EMIs
✔️ Save before you swipe. Always.
🧠 Spend like you’re building your future—not breaking it.
Vizzve helps Gen Z track loans, understand credit, and manage their money without falling into the ‘BNPL trap.’
Stay trendy and financially stable. Be the boss of your budget.
❓FAQs
Q1. Is BNPL bad for Gen Z?
Not inherently, but overuse or mismanagement leads to untracked debt and credit score issues.
Q2. Are instant loan apps safe?
Only use RBI-registered lenders. Many third-party apps misuse data and charge hidden fees.
Q3. How can Gen Z build healthy credit?
Start with small, manageable loans or EMIs. Pay back on time, and track with apps like Vizzve.
Published on :July 29th
Published by : Kaushik
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed