Buy now, pay later has now become the newest way for consumers to cover their everyday expenses.
This new form of payment has economists and consumer advocates concerned. This raises a concern as this might just be an easier way for Americans to accumulate more debt.
The payment method of “Buy Now, Pay Later” spilts purchases into four or more installment payments which need to be paid over a period of a few weeks or months depending on the amount of the purchase. However, this can become dangerous for buyers as they can simply open new accounts for different transactions. These transactions are usually made and given zero-minimal interest.
It is not simply just one service provider that offers the opportunity to “Buy Now, Pay Later” which means that multiple purchases could be made on different providers leading to more and more debt in the long run.
Ultimately, these providers could be creating a revolving cycle for shoppers that could ruin their credit in the future. However, these different service providers feel that they are a better and safer option than other lines of credit. Ironically, they state that their goal is help keep people out of debt.
Times are tough, prices keep rising, but wages are not. It is up to you to decide if you want to buy now, and pay later.
This blog post is part of the CIMA Law Group blog. If you are located in Arizona and are seeking legal services, CIMA Law Group specializes in Immigration Law, Criminal Defense, Personal Injury, and Government Relations.
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