economy

January 8, 2026

Thinking about using a buy now, pay later plan? Here are 5 hidden risks to avoid.

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Thinking about using a buy now, pay later plan? Here are 5 hidden risks to avoid.

TL;DR

  • BNPL plans can lead to overspending by making purchases feel more manageable through installment payments.
  • Late fees and penalties can quickly accumulate if payments are missed, increasing the overall cost of purchases.
  • Missed BNPL payments can negatively impact credit scores, affecting future borrowing opportunities.
  • Processing refunds and disputes for BNPL purchases can be complex and time-consuming, potentially leading to ongoing payment obligations.
  • BNPL can mask underlying financial problems, delaying the addressal of real debt issues.

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