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These allow shoppers to put somemoneydown on an item now and pay it off over time.
This can seem convenient, but consumer experts warn that these plans are not without their faults.
Read on to learn more about the pitfalls of BNPL plans.
This is especially true during the holidays, when many consumers are shopping more than usual.
Melanie Musson, a finance expert withInsuranceProviders.com, explained that this can easily lead to overspending.
it’s possible for you to usually get approved for BNPL plans without having your credit checked.
Musson urged consumers to spend only money they have on hand.
If you dont have the money to buy something, you shouldnt buy it.
Going into debt means youll start your next paycheck behind.
Buy now pay later plans usually give you a couple of months to pay back what you borrowed.
If you cant make the payments in time, youll be faced with fees and interest, she said.
Tricky Returns
Not all purchases are worth keeping.
However, participating in a BNPL plan can make returning an item a pain.
This delay can lead to missed payments, extra fees and headaches just to get your money back.
Purchases Arent Protected
Petosa explained that credit cards offer a lot of protections for consumers.
This is not the case with BNPL plans.
Without heavy regulation, BNPL providers set their own terms, which can vary a lot.
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