Are you a Buy Now-Pay Later Fan?

You might notice that the ease of swiping your credit card often allows you to make impulse purchases. Have you ever purchased something you probably shouldn’t have because you mindlessly swiped your card? That’s okay! We all splurge on items that we want, but it’s important to discuss the consequences of building up debt on your cards and learning how to make smart decisions when doing so. 

“Buy now-pay later” apps and options on credit cards are all the craze right now, which allows individuals to split up their payments into installments instead of paying the lump sum in full. You may have seen companies like Klarna, Affirm, or AfterPay pop up while you were checking out at your favorite online store and decided to break up the price of your new favorite shoes over the course of 3 months. Many of you have probably used a payment plan when purchasing your peloton or new furniture for your house. I took advantage of Affirm when purchasing furniture for my new apartment, which helped lower the initial cost of my big move. While there is nothing wrong with choosing this option, it’s important to remember to pay your total minimum balance in full AND on time to avoid being hit with interest rates, a declining credit score, and late fees. Be cautious and make sure that you read the fine print of these buy now pay later options and ensure that participating will not negatively impact your financial health.  Only take on what you can afford! 

While discussing spending, it’s also important to touch on budgeting and how it is such a crucial part of your financial life in order to build your net worth and also avoid spending mistakes and consequences as you saw listed above. We’ve mentioned this in other blogs before, but creating clear goals for your future and listing out your wants versus your needs is a great way to get started on your personal budget. Check out our other blog for more tips on how to effectively and strategically build financial goals and a budget that is best for you. If you have any questions for us, email us at or schedule a complimentary 30-minute consultation here

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