“Buy Now, Pay Later” (BNPL) services like Affirm and Afterpay can be tempting because they let you break large purchases into smaller, more manageable payments. But they also come with risks that you should be aware of.
Overspending: Since you’re not paying the full price upfront, it’s easy to spend more than you can afford, especially if you’re juggling multiple BNPL loans across different platforms.
Interest and Fees: While some BNPL plans offer 0% interest, others charge high rates, turning what seemed like a great deal into a much more expensive one. Missing a payment can also lead to late fees or hurt your credit score, as some BNPL providers report to credit bureaus.
Limited Protections: Unlike credit cards, BNPL doesn’t offer the same fraud protections or dispute options, which can leave you more vulnerable in the event of an issue.
To avoid unnecessary financial stress, be sure to read the terms carefully and stick to a budget.
If you’re ready to take control of your financial future, book a financial planning session through your participant portal or the Francis LLC app, available on the Apple App Store and Google Play, or call us at 866-232-6457.
