Buy Now Pay Later (BNPL) is becoming more and more popular, but is it a good idea?
BNPL, or Buy Now Pay Later, is everywhere in stores and online as a way to pay for a purchase. You get your merchandise and pay for it interest free over several weeks or a couple of months. The payments will hit your debit or credit card on the specified payment dates.
What could possibly go wrong? Well, you could be spending more than you otherwise would, which can put you in a bad financial position. Or, you might miss a payment or not have enough funds to cover a payment when it’s due, and then get hit with fees – ouch. That can often happen when someone uses BNPL regularly and has payments hitting at different times.
Always make sure YOU are in control of your spending and your money. Here’s a short video from the Consumer Financial Protection Bureau about BNPL. Enjoy and make sure you put yourself in financial control!