Buy Now, Pay Later: How This Simple Service Can Trap Consumers
By Anabel Kim
While online shopping, you may have seen: "Pay in 4 interest-free payments with Klarna" or "Split this into easy payments with Afterpay." No credit card, no interest, no worries. Right?
Buy Now Pay Later (BNPL) services are everywhere now. They promise flexibility. But for many teens and college students, they are becoming a trap that leads to debt and poor financial habits.
What is Buy Now, Pay Later?
BNPL is exactly what it sounds like: you buy something now, and pay for it later in smaller installments. Most services will break the total into four payments over six weeks. You get the item immediately, and it feels less painful than swiping your debit card for the full amount.
Some of the most popular BNPL providers include Klarna, Afterpay, Affirm, and Zip. They are integrated into checkout pages for clothing, electronics, furniture, food delivery, and even concert tickets.
Why it’s so tempting:
BNPL can sound nice if:
You don’t have a credit card (or don’t want one)
You’re on a student budget
You want something now but can’t afford the full cost until next week
It’s only $20 today… so how bad can that be?
The Hidden Risks
The convenience of BNPL comes with several hidden dangers. The small payments can lead to impulse buying, especially when a purchase feels less expensive than it actually is. It is easy to lose track of how many BNPL orders you have made, resulting in overlapping payment schedules.
49% of users report at least one problem while using a service, such as overspending, missing payments, and regretting a purchase. If you miss a payment, many services will charge you a late fee. If you fall too far behind, your account can be sent to collections, which may impact your credit score. Most BNPL services also do not help build credit, so even if you pay on time, you are not even building financial history.
BNPL is not automatically bad, but it does require careful financial planning. If you choose to use it, consider these tips:
Track every purchase and payment in a budget or calendar
Use BNPL only for essentials, not for impulse purchases
Read all the terms and conditions carefully to understand fees and policies
Avoid making multiple BNPL purchases at the same time
Final Takeaways:
BNPL services might seem like a smart solution when money is tight, but they can quickly become a problem if you use them without caution, organization, and planning. They are designed to encourage spending and make it easier to overlook the total cost.
The best financial decisions are the ones that give you control over your money. Before choosing to buy now and pay later, take a step back and ask yourself if the purchase is truly worth it. Knowing the risks is the first step toward making smarter choices.
Sources:
https://www.bankrate.com/loans/personal-loans/buy-now-pay-later-survey/
