Klarna, a global retail bank, has published new research about the personal financial habits of UK consumers.

The report reveals the anxiety that consumers feel about credit card borrowing. Customers who use buy-now-pay later plans are less likely to miss a payment. However, 16 percent of customers who used a traditional credit card said they had missed a payment in the past.

Credit cards are the most common source of debt at 50%, according to the report. The report shows that borrowing from high-street banks is 25 percent and payday loans are 23 percent.

Research also showed that women are less likely to have debt than men, with 53 percent of them stating they had never been in debt. This compares to 46 percent for men. Gen Z is also less likely than Gen X to be in debt, at 52 percent. This could be because they are less likely than Gen X to use credit cards.

It’s encouraging to see that more consumers are aware of the realities of credit card borrowing. People have believed credit cards are safe because they are associated well with household names. However, they exist solely to make a profit off consumer misery by charging high interest rates and fees, trapping them in long-term debt.

Klarna also reported that 68% of users who buy now and pay later agreed that the service helped them manage their holiday spending better.

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