Want to buy now, pay later this holiday season? Ask yourself these 5 questions first
“Buy now, pay later” payment plans are a popular financing option, especially around the holiday season
Shoppers gearing up for the 2023 holiday season won’t have to look hard for a convenient way to pay for all those presents.
“ Buy now, pay later,” a type of payment plan that divides the total cost of your purchase into smaller installments, is offered at most major retailers, including Walmart, Target and Amazon. It’s expected to fuel $17 billion in online holiday spending this year – up almost 17% from 2022 – according to forecast data from Adobe Analytics, an analytics and measurement tool from software company Adobe.
The short application, immediate approval decision and no hard credit check can make buy now, pay later seem like a no-brainer financing option, but experts say it’s risky. Ask yourself these five questions before opting in.
1. DOES THIS PLAN CHARGE INTEREST?
