Buy Now Pay Later Loans: Hidden Debt Trap
Update: 2025-12-29
Description
Buy now pay later services like Klarna, Affirm, and Afterpay have surged in popularity, with Americans racking up over $116 billion in purchases last year. These services allow shoppers to split payments into small installments without a hard credit check, often over four to six weeks. However, these loans are not reported to credit bureaus and face fewer rules than credit cards, making it easy for borrowers to stack plans from multiple providers and accumulate debt without realizing it. Regulators have been slow to act, but FICOs plan to include buy now pay later debts in credit scores and big banks launching their own installment options could change the landscape. Young shoppers, dubbed Klarnamaxxers, may find this easy credit appealing, but it could lead to overextension and debt issues down the road. Checkout Solipillow.com
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