‘Buy now, pay later’ plans: Great way to shop, or a trap? [Video]

“Buy now, pay later” services gained much traction during the pandemic. With money tighter than ever for many families, a new report in Bankrate said more than a third of adults in the U.S. have tried buy now, pay later, or BNPL services.

They have their benefits, such as low-interest or even interest-free payments.

But now we’re starting to see potential drawbacks to using these platforms.

Counselors warn about the risks

College financial counselor Lisa Fails educates college students about basic money matters, including the risks of these programs.

“They want it now,” she said, “but they may not have that full price, and it’s so easy to push that button.”

A recent Bankrate survey foundthat 39% of adults have shopped using buy now, pay later services from lenders like PayPal, Affirm, Afterpay or Klarna. They allow you to split purchases into installments with no or minimal interest, unlike a credit card that can charge 20% APR in some …