Buy now, pay later options are becoming increasingly common at checkout, allowing shoppers to split purchases into smaller payments. While these options can be convenient, they are not always as straightforward as they may seem. Many plans require an upfront payment, with the remaining balance automatically deducted over the following weeks. If all payments are made on time, there may be no additional costs; however, missed payments can quickly result in fees.
Consumer advocates caution that the convenience of these services can lead to overspending or losing track of multiple payments. Additionally, unlike credit cards, some of the usual consumer protections may not apply, which can create challenges if there are issues with a purchase or return.
Randy Hutchinson, President and CEO of the Better Business Bureau of the Mid-South and host of "Protecting Your Money," emphasizes the importance of reading the fine print and understanding exactly what you are agreeing to before opting for a buy now, pay later option.