Buy Now, Pay Later Pain – Part 2

Do you buy now, pay later?

Bankrate has found three trends among “buy now, pay later” borrowers. They’re more likely to have higher debt balances on other accounts. Many are repeat borrowers, and a majority don’t have good credit. Lending Tree notes an increasing number of users that are behind in payments. Nearly one-fourth of those surveyed carried three or more of these loans at one time. They’re buying groceries on payment plans and considering it for food delivery and takeout. A growing number use it to bridge paychecks – primarily high earners, men, younger Americans, and parents of young children. People need to understand that contentment far outweighs debt. Here’s how to get there:

First, avoid going where you’re tempted to spend more than you can afford. Reconsider your peer group if they cause you to overspend. Learn to differentiate between needs and wants and to delay gratification. Your actions can positively impact your friends and family. Plan ahead for special occasions. Fund an emergency savings account and use it only for true emergencies. Then, plan to pay off your debt by following a budget. Increase your income or decrease expenses, and apply excess cash to that debt. The snowball or avalanche payback methods work, so check them out! “Buy now, pay later” can be helpful in financing large, needed items in a pinch, especially when little or no interest is charged. However, credit cards are a better option for those who can pay in full because they offer rewards and are a quick way to improve your credit score.

So if you’re struggling with credit card debt, Christian Credit Counselors can help. They’ll create a debt management plan that works. For more information, visit online at crown.org/ccc.