A growing number of American shoppers have jumped at the chance to use “buy now, pay later” loans to pay for new sneakers, electronics, or luxury goods in installments.
FILE - A 65-inch television is shown at a warehouse, Thursday, June 17, 2021, in Lone Tree, Colo. Buy now, pay later loans allow users to pay for items such as new sneakers, electronics or luxury goods in installments. – Americans have grown fond of “buy now, pay later” services, but the “pay later” part is becoming increasingly difficult for some borrowers.
Given those features, consumer advocates and financial advisors initially had seen buy now, pay later plans as a potentially healthier form of consumer debt if used correctly. The biggest concern had been late fees, which could act as a hefty finance charge on a small purchase if a borrower is late on a payment. The fees can run as high as $34, plus interest.
“If these buy now, pay later plans are not adequately budgeted for, they can have a cascading impact across a person’s entire financial life,” said Andre Jean-Pierre, a former Morgan Stanley wealth advisor who now runs his own financial planning firm focused on helping Black Americans adequately save and budget.
The Consumer Financial Protection Bureau is looking into the popularity of buy now, pay later loans and is expected to soon issue a report with its findings.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Car insurance: Why it's needed and what type to buyAuto insurance protects your assets if you're in an accident. Still, insurance is a complex product that may leave you with many questions. For example, how much should you spend on car insurance? What types of coverage should you get?
Weiterlesen »
Binance.US | Buy, Sell, & Trade Crypto & Altcoins In The USBuy, sell, and trade Bitcoin, Ethereum, and over 100 cryptocurrencies with some of the lowest trading fees in the US. Get started within minutes.
Weiterlesen »
Understanding the Risks of Buy Now, Pay Later AppsBuy now, pay later apps have appeal for cash-strapped college students, but they can be a slippery slope to debt if they’re not used responsibly.
Weiterlesen »
EXPLAINER: What to know about 'buy now, pay later'If you shop online for clothes or furniture, sneakers or concert tickets, you’ve seen the option at checkout to “buy now, pay later” by breaking the cost into smaller installments over time
Weiterlesen »
When to buy a child their first phone: You may be surprisedThe average starting age for a child's first phone is younger than ever. But there's a good reason why you may want a smartphone in their young hands: safety.
Weiterlesen »