Richard Barrington - Buy Now Pay Later

FINANCIAL EXPERT WARNS AGAINST THE HIDDEN TRAPS OF 'BUY NOW, PAY LATER' SERVICES

Expert recommends avoiding multiple BNPL loans and watching for automatic payment pitfalls.  Using "buy now, pay later" (BNPL) has become increasingly common in recent years as people look to split up and finance purchases they make.   According to Credit Sesame financial analyst Richard Barrington, some key steps people should take as they utilize BNPL include budgeting beforehand, reviewing the terms of the plan, determining what fees could be associated and being prepared for automatic payments.  "If you need BNPL to be able to pay for something, you have to question how you’re going to come up with the money to make the BNPL payments when they come due," he said, noting budgeting ahead of time can help someone figure out if they can foot the bill for what they’re buying and any debt they could build up because of it.  He recommended reviewing what income will come in "over the term of the BNPL payments" and then subtracting "all the essential expenses you’ll have during that time" to help "see if you’ll have enough left over to cover BNPL payments."

Financial Analyst for Credit Sesame RICHARD BARRINGTON