The number of buy now, pay later loans increased nearly 1,100% between 2019 and 2021, according to data compiled by the Consumer Financial Protection Bureau. The debt that accumulates from these loans is referred to as "phantom debt," because it's unclear just how much is out there and how well consumers are paying them back. Juniper Research estimates these transactions could reach nearly $700 billion by 2028. Watch the video above to learn more about the risk phantom debt poses to the economy.

Chapters:
0:00 Introduction
1:34 How much phantom debt is out there
5:00 Consequences of phantom debt
8:15 Regulating buy now, pay later

Produced by: Charlotte Morabito
Additional Reporting by: Jessica Dickler
Edited by: Nora Rappaport
Animation: Mallory Brangan, Christina Locopo
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images

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How Phantom Debt Is Haunting American Consumers

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