Financial Literacy Month Tip of the Week #4 – Buy Now, Pay Later Loans
Monday July 3, 2023Buy Now, Pay Later (BNPL) loans have gained popularity with consumers shopping online as an alternative option to credit cards. A recent study by the CFPB found that between 2019 and 2021, the amount of consumer BNPL loans grew nearly tenfold. 1 As more retailers offer BNPL at checkout, it is important for potential borrowers to understand the risks and benefits to avoid any unintended consequences.