Buy now, pay later installment services are growing in popularity.
Unlike lay-away plans, buyers receive items immediately without having to pay the purchase price first.
But the Better Business Bureau says consumers should read and understand the terms of the installment agreement first – otherwise they might be surprised.
” While many installment payment services come with only a few small payments and zero percent interest, rates can be as high as 30 percent depending on your credit and the retailer,” says Pamela Hernandez of the Better Business Bureau.
“Payments can last for as little as a few weeks or as long as 39 months, Hernandez adds.
She says its important to think of buy now-pay later as a loan.
She says the best bet is to consider how making ongoing payments will affect your budget after the holidays.