Defense and Compliance AttorneysSource: site
Florida currently has one of the highest serious credit card delinquency rates in the country, and the rapid growth of “buy now, pay later” (BNPL) is adding another layer of risk for already stretched households. Together, high revolving balances, rising living costs, and lightly regulated BNPL installment plans are leaving many Floridians with multiple overlapping payments and a greater chance of falling behind.
What’s happening in Florida
Reports show Florida now ranks near the top among U.S. states for late loan and credit card payments, with only a few states such as Nevada posting worse delinquency levels. Analysts link this to high housing and living costs in Sun Belt metros like Miami, where a large share of residents juggle several cards and carry balances month to month.
At the same time, BNPL use has surged in Florida around online shopping and big sales events, allowing consumers to split purchases into short-term installments that feel smaller than using a traditional credit card. This extra line of credit often comes on top of existing card debt, raising total monthly obligations even if each BNPL plan looks manageable by itself.
BNPL vs credit cards
Nationally, BNPL loans still show lower delinquency rates (around 2% or below) than credit cards, which are closer to 9% delinquent, but BNPL obligations are often not fully visible in standard credit reports. Because payments are typically auto-debited from debit cards or bank accounts, missed BNPL installments can quickly trigger bank overdrafts or force consumers to rely more heavily on credit cards to cover basics.
Credit card balances reached record levels in 2024, and average card debt per consumer has continued to rise, increasing the likelihood that a job loss, emergency, or rate hike will push accounts into 30-, 60-, or 90-day delinquency. In high-stress states like Florida and Nevada, roughly 13% of credit card balances are now delinquent, significantly above the national average and well above many Northeastern and Midwestern states.
Why BNPL worsens stress
BNPL makes it easier to say yes to discretionary purchases, because the checkout screen emphasizes small biweekly payments rather than the total cost or the combined impact of multiple plans. For Floridians already using several credit cards, stacking BNPL plans on top of rent, utilities, and card minimums can quietly crowd out income until one missed payment cascades into others.
Regulatory oversight for BNPL remains patchy: federal regulators recently signaled they will not prioritize certain enforcement actions against BNPL lenders, while only a few states have adopted detailed BNPL rules, leaving consumers in Florida with fewer standardized protections and disclosures than with traditional credit cards.
Key differences at a glance
| Feature | Buy now, pay later (BNPL) | Credit cards |
|---|---|---|
| Typical pricing | Often advertised as “interest-free,” but some plans charge rates similar to cards on longer terms. | Interest rates commonly in the mid-to-high teens or above on revolving balances. |
| How people use it | Short-term, purchase-specific installment plans tied to online or point-of-sale checkouts. | General-purpose line of credit for everyday spending and emergencies. |
| Delinquency visibility | Limited, evolving credit reporting; missed payments may not fully show in traditional scores yet. | Widely reported to credit bureaus; delinquencies quickly damage credit scores. |
| Risk in high-debt states | Can mask overall strain by spreading out payments while card balances remain high, as seen in Florida’s elevated delinquency rates. | Already showing stress with double‑digit delinquency shares in states like Florida and Nevada. |
Upcoming Events
Defense and Compliance Attorneys