Why “Buy Now, Pay Later” Can Get Expensive Fast
Buy Now, Pay Later (BNPL) options have become increasingly common, especially when shopping online. They make it easy to split a purchase into smaller payments over time, often with no interest if everything is paid on schedule. While this can be convenient, it’s important to understand how quickly these payments can add up.
At first glance, the individual payments may seem small and manageable. But when you use BNPL for multiple purchases, those payments stack together. What started as a few manageable installments can turn into several payments due at once, making it harder to keep track of your monthly obligations.
Small Payments Add Up Quickly
It’s easy to focus on the smaller payment amount instead of the total cost. For example, four payments of $50 may feel easier to manage than a single $200 purchase. But if you have several BNPL plans at once, you could be committing a large portion of your future income without realizing it.
Quick Tip:
Before using BNPL, look at your full monthly budget and make sure you can comfortably afford all upcoming payments.
It Can Encourage Overspending
Because BNPL makes purchases feel more affordable in the moment, it can be easier to spend more than you originally planned. This can make it harder to stay on track with your financial goals.
Taking a moment to pause before committing can help you make a more confident decision.
Quick Tip:
Ask yourself if you would still make the purchase if you had to pay the full amount upfront.
A Thoughtful Approach Makes a Difference
Buy Now, Pay Later can be a useful tool when used carefully, but it’s important to understand the full picture. Staying aware of your total payments and keeping your budget in mind can help you avoid unnecessary stress.
If you ever have questions about managing payments or building a plan that works for you, Central Willamette Credit Union is here to help.