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Will Buy Now, Pay Later Leave Coal in Holiday Stockings?
Sure, it’s convenient — but it can also be costly
It was not long ago that the holiday shopping season meant putting items on layaway.
You’d find that perfect gift, pay a percentage of the cost to the store so they would hold it for you, and pay in full before gift giving time in order to retrieve your gift.
You don’t have the money today, but you know your kid needs this bike? Put some cash down now, save up, and be a hero in late December!
Now, though, there’s something even better.
Buy Now, Pay Later means you can pay 25% of the cost of an item and leave with it today.
No worries — you HAVE the item when you leave the store or check out online.
The balance of the transaction is paid over 3 additional installments, usually two weeks apart. It’s auto-deducted from your account or card on file, so you don’t even have to think about it!
Sounds easy — and even better than layaway! You get the item NOW!
Not so fast, consumer advocates say.
