UPDATE 1-US ‘buy now, pay later’ splurges raise holiday debt hangover risk

Roxanne Ross of Florida is one of a growing number of Americans dodging higher interest rates on credit cards by instead turning to "buy now, pay later" services as they shop for holiday merchandise. As of Monday, she was considering using Klarna, a buy now, pay later service, to spread the cost across four installments that stretch into next year. With U.S. credit card balances at record levels and defaults rising, more shoppers than ever are tapping buy now, pay later services on key shopping days to stretch their budgets.