The current economic climate has been causing many people to rethink their spending habits. As the cost of living continues to rise and wages remain stagnant, some shoppers are looking to tighten their budgets and minimize frivolous spending. However, for those who still want to make necessary purchases, the “buy now, pay later” option is becoming popular.
According to a study conducted by the Consumer Financial Protection Bureau, nearly one-fourth of shoppers make use of such services. The services allow shoppers to spread the cost of their purchases over multiple payments, making the products more affordable. As a result, people who may not have been able to afford a purchase upfront can make the purchase without having to deplete their wallets all at once.
However, the services aren’t without risk. Shoppers who opt to use the service must be cognizant of the interest rates applied to their purchases. Depending on the service, these interest rates can be quite high. Furthermore, some services will charge late payment fees if payments are not made on time.
Ultimately, the best course of action for shoppers is to carefully weigh their options when making a purchase. For those who are feeling the pinch of the economy, taking the time to search for cheaper alternatives or taking advantage of sales and discounts can be a great way to stretch a budget.