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NBC News
5 days ago
- Business
- NBC News
Tips to help manage your buy now, pay later loans
Between rising prices and dwindling job growth, using 'buy now, pay later' on everything from concert tickets to fast food deliveries is becoming increasingly appealing. But greater use could also mean greater trouble, as more people fall behind on repaying these loans. Buy now, pay later loans gained popularity during the pandemic, especially among young people. While these loans can help you make large purchases without paying interest or undergoing a hard inquiry in your credit report, they can also easily be overused. About 4 in 10 Americans under the age of 45 say they've used 'buy now, pay later″ services when spending on entertainment or restaurant meals, or when paying for essentials like groceries or medical care, according to a poll from The Associated Press-NORC Center for Public Affairs Research. Buy now, pay later loans were not previously reported to the three major credit reporting bureaus. But consumers will soon see the impact of buy now, pay later loans on their FICO credit scores. Whether you're a first-time or recurring user of buy now, pay later plans, here are some expert recommendations to use this tool responsibly. Focus on needs vs. wants Buy now, pay later plans divide purchases in monthly installments, typically in four payments. These loans are marketed as having low or no interest. Klarna, Afterpay, PayPal Later and Affirm are among the most popular buy now, pay later companies. These loans should ideally be used for large purchases or necessities, said Lauren Bringle, Accredited Financial Counselor at Self Financial. Bringle recommends asking yourself these questions before purchasing: Can I survive without this purchase right now? Do I need it for work, school, or a basic household need? Buy now, pay later is best used when you have a plan for the purchase, not for impulse buys. For example, when you need to buy a computer for school or a new refrigerator for your house, recommended Tyler Horn, head of planning at Origin, a budgeting app. Pause before purchasing Before deciding to take out a buy now, pay later loan, it's a good idea to pause and consider if it's the best financial decision for you, recommended Erika Rasure, Chief Financial Wellness advisor for Beyond Finance. Buy now, pay later plans can be positive budgeting tools when used strategically. However, it's essential you know your spending behaviors before using them, said Rasure. If you're an emotional spender, it might be hard for you to moderate your use of this tool and you could end up adding to your financial stress. 'Buy now, pay later can become a coping mechanism rather than a financial tool that can get you a good deal or improve your cash flow,' said Rasure. If you have other payments due, such as credit card or student loan payments, consider how a buy now, pay later loan will add to your monthly payments, recommended Sarah Rathner, Senior Writer for NerdWallet. Read the fine print Like credit cards, each buy now, pay later loan has terms and conditions that can vary by purchase and providers. It's crucial that you know what you're agreeing to before you sign up, recommended Michael Savino, Chief Lending Officer at Municipal Credit Union. 'Always read the fine print. Understand fees, repayment schedules, and what happens if you miss a payment or go into default,' said Savino. In general, if you miss a buy now, pay later payment, you can face fees, interest, or the possibility of being banned from using the services in the future. Avoid stacking BNPL loans You can easily run into difficulty keeping up with the cost and schedule of your repayments if you're trying to simultaneously pay off two, three or more loans, Savino said. 'Juggling multiple plans creates a blind spot and overall debt load, and multiple repayment dates are hard to manage,' Savino said. 'So more loans makes it more difficult to budget.' The best approach: Stay mindful of your overall spending, and limit the number of buy now, pay later loans. Keep track of your loan(s) Whether or not you're paying for multiple buy now, pay later purchases at once, you want to be aware of where your money is going at any given time, recommended Courtney Alev, consumer advocate at Credit Karma. 'Buy now, pay later often requires automatic payments, so you want to make sure that your account is funded so that those payments are processing successfully,' recommended Jennifer Seitz, director of education at Greenlight, a financial literacy app for families. There are many ways to track your loan payments — from setting a reminder on your calendar, to creating an intricate excel spreadsheet or tracking them on an app, said Jesse Mecham, founder of the budgeting app YNAB. Finding the best method that works for you will help you stay on track and avoid late fees. Make buy now, pay later work for you For shoppers with low credit scores or no credit history, buy now, pay later loans can seem like the best, if not the only, loan option. If used moderately and responsibly, these short-term loans can be a positive lending exercise, said Savino. 'It allows you to to establish a baseline (and) get access to other affordable credit options that you can leverage that will ultimately provide financial wellness,' he added. Still, NerdWallet's Rathner emphasized that shoppers using these tools always remember that buy now, pay later is a form of borrowing money. 'It just kind of feels like you're given a little extra time to pay back,' Rathner said. 'But the reality is, if you miss payments, it can hurt your credit, much like missing payments with any other loan.'
The Hill
5 days ago
- Business
- The Hill
Tips to help manage your buy now, pay later loans
NEW YORK (AP) — Between rising prices and dwindling job growth, using 'buy now, pay later' on everything from concert tickets to fast food deliveries is becoming increasingly appealing. But greater use could also mean greater trouble, as more people fall behind on repaying these loans. Buy now, pay later loans gained popularity during the pandemic, especially among young people. While these loans can help you make large purchases without paying interest or undergoing a hard inquiry in your credit report, they can also easily be overused. About 4 in 10 Americans under the age of 45 say they've used 'buy now, pay later″ services when spending on entertainment or restaurant meals, or when paying for essentials like groceries or medical care, according to a poll from The Associated Press-NORC Center for Public Affairs Research. Buy now, pay later loans were not previously reported to the three major credit reporting bureaus. But consumers will soon see the impact of buy now, pay later loans on their FICO credit scores. Whether you're a first-time or recurring user of buy now, pay later plans, here are some expert recommendations to use this tool responsibly. Focus on needs vs. wants Buy now, pay later plans divide purchases in monthly installments, typically in four payments. These loans are marketed as having low or no interest. Klarna, Afterpay, PayPal Later and Affirm are among the most popular buy now, pay later companies. These loans should ideally be used for large purchases or necessities, said Lauren Bringle, Accredited Financial Counselor at Self Financial. Bringle recommends asking yourself these questions before purchasing: Can I survive without this purchase right now? Do I need it for work, school, or a basic household need? Buy now, pay later is best used when you have a plan for the purchase, not for impulse buys. For example, when you need to buy a computer for school or a new refrigerator for your house, recommended Tyler Horn, head of planning at Origin, a budgeting app. Pause before purchasing Before deciding to take out a buy now, pay later loan, it's a good idea to pause and consider if it's the best financial decision for you, recommended Erika Rasure, Chief Financial Wellness advisor for Beyond Finance. Buy now, pay later plans can be positive budgeting tools when used strategically. However, it's essential you know your spending behaviors before using them, said Rasure. If you're an emotional spender, it might be hard for you to moderate your use of this tool and you could end up adding to your financial stress. 'Buy now, pay later can become a coping mechanism rather than a financial tool that can get you a good deal or improve your cash flow,' said Rasure. If you have other payments due, such as credit card or student loan payments, consider how a buy now, pay later loan will add to your monthly payments, recommended Sarah Rathner, Senior Writer for NerdWallet. Read the fine print Like credit cards, each buy now, pay later loan has terms and conditions that can vary by purchase and providers. It's crucial that you know what you're agreeing to before you sign up, recommended Michael Savino, Chief Lending Officer at Municipal Credit Union. 'Always read the fine print. Understand fees, repayment schedules, and what happens if you miss a payment or go into default,' said Savino. In general, if you miss a buy now, pay later payment, you can face fees, interest, or the possibility of being banned from using the services in the future. Avoid stacking BNPL loans You can easily run into difficulty keeping up with the cost and schedule of your repayments if you're trying to simultaneously pay off two, three or more loans, Savino said. 'Juggling multiple plans creates a blind spot and overall debt load, and multiple repayment dates are hard to manage,' Savino said. 'So more loans makes it more difficult to budget.' The best approach: Stay mindful of your overall spending, and limit the number of buy now, pay later loans. Keep track of your loan(s) Whether or not you're paying for multiple buy now, pay later purchases at once, you want to be aware of where your money is going at any given time, recommended Courtney Alev, consumer advocate at Credit Karma. 'Buy now, pay later often requires automatic payments, so you want to make sure that your account is funded so that those payments are processing successfully,' recommended Jennifer Seitz, director of education at Greenlight, a financial literacy app for families. There are many ways to track your loan payments — from setting a reminder on your calendar, to creating an intricate excel spreadsheet or tracking them on an app, said Jesse Mecham, founder of the budgeting app YNAB. Finding the best method that works for you will help you stay on track and avoid late fees. Make buy now, pay later work for you For shoppers with low credit scores or no credit history, buy now, pay later loans can seem like the best, if not the only, loan option. If used moderately and responsibly, these short-term loans can be a positive lending exercise, said Savino. 'It allows you to to establish a baseline (and) get access to other affordable credit options that you can leverage that will ultimately provide financial wellness,' he added. Still, NerdWallet's Rathner emphasized that shoppers using these tools always remember that buy now, pay later is a form of borrowing money. 'It just kind of feels like you're given a little extra time to pay back,' Rathner said. 'But the reality is, if you miss payments, it can hurt your credit, much like missing payments with any other loan.' —— The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
Winnipeg Free Press
5 days ago
- Business
- Winnipeg Free Press
Tips to help manage your buy now, pay later loans
NEW YORK (AP) — Between rising prices and dwindling job growth, using 'buy now, pay later' on everything from concert tickets to fast food deliveries is becoming increasingly appealing. But greater use could also mean greater trouble, as more people fall behind on repaying these loans. Buy now, pay later loans gained popularity during the pandemic, especially among young people. While these loans can help you make large purchases without paying interest or undergoing a hard inquiry in your credit report, they can also easily be overused. About 4 in 10 Americans under the age of 45 say they've used 'buy now, pay later″ services when spending on entertainment or restaurant meals, or when paying for essentials like groceries or medical care, according to a poll from The Associated Press-NORC Center for Public Affairs Research. Buy now, pay later loans were not previously reported to the three major credit reporting bureaus. But consumers will soon see the impact of buy now, pay later loans on their FICO credit scores. Whether you're a first-time or recurring user of buy now, pay later plans, here are some expert recommendations to use this tool responsibly. Focus on needs vs. wants Buy now, pay later plans divide purchases in monthly installments, typically in four payments. These loans are marketed as having low or no interest. Klarna, Afterpay, PayPal Later and Affirm are among the most popular buy now, pay later companies. These loans should ideally be used for large purchases or necessities, said Lauren Bringle, Accredited Financial Counselor at Self Financial. Bringle recommends asking yourself these questions before purchasing: Can I survive without this purchase right now? Do I need it for work, school, or a basic household need? Buy now, pay later is best used when you have a plan for the purchase, not for impulse buys. For example, when you need to buy a computer for school or a new refrigerator for your house, recommended Tyler Horn, head of planning at Origin, a budgeting app. Pause before purchasing Before deciding to take out a buy now, pay later loan, it's a good idea to pause and consider if it's the best financial decision for you, recommended Erika Rasure, Chief Financial Wellness advisor for Beyond Finance. Buy now, pay later plans can be positive budgeting tools when used strategically. However, it's essential you know your spending behaviors before using them, said Rasure. If you're an emotional spender, it might be hard for you to moderate your use of this tool and you could end up adding to your financial stress. 'Buy now, pay later can become a coping mechanism rather than a financial tool that can get you a good deal or improve your cash flow,' said Rasure. If you have other payments due, such as credit card or student loan payments, consider how a buy now, pay later loan will add to your monthly payments, recommended Sarah Rathner, Senior Writer for NerdWallet. Read the fine print Like credit cards, each buy now, pay later loan has terms and conditions that can vary by purchase and providers. It's crucial that you know what you're agreeing to before you sign up, recommended Michael Savino, Chief Lending Officer at Municipal Credit Union. 'Always read the fine print. Understand fees, repayment schedules, and what happens if you miss a payment or go into default,' said Savino. In general, if you miss a buy now, pay later payment, you can face fees, interest, or the possibility of being banned from using the services in the future. Avoid stacking BNPL loans You can easily run into difficulty keeping up with the cost and schedule of your repayments if you're trying to simultaneously pay off two, three or more loans, Savino said. 'Juggling multiple plans creates a blind spot and overall debt load, and multiple repayment dates are hard to manage,' Savino said. 'So more loans makes it more difficult to budget.' The best approach: Stay mindful of your overall spending, and limit the number of buy now, pay later loans. Keep track of your loan(s) Whether or not you're paying for multiple buy now, pay later purchases at once, you want to be aware of where your money is going at any given time, recommended Courtney Alev, consumer advocate at Credit Karma. 'Buy now, pay later often requires automatic payments, so you want to make sure that your account is funded so that those payments are processing successfully,' recommended Jennifer Seitz, director of education at Greenlight, a financial literacy app for families. There are many ways to track your loan payments — from setting a reminder on your calendar, to creating an intricate excel spreadsheet or tracking them on an app, said Jesse Mecham, founder of the budgeting app YNAB. Finding the best method that works for you will help you stay on track and avoid late fees. Make buy now, pay later work for you For shoppers with low credit scores or no credit history, buy now, pay later loans can seem like the best, if not the only, loan option. If used moderately and responsibly, these short-term loans can be a positive lending exercise, said Savino. Monday Mornings The latest local business news and a lookahead to the coming week. 'It allows you to to establish a baseline (and) get access to other affordable credit options that you can leverage that will ultimately provide financial wellness,' he added. Still, NerdWallet's Rathner emphasized that shoppers using these tools always remember that buy now, pay later is a form of borrowing money. 'It just kind of feels like you're given a little extra time to pay back,' Rathner said. 'But the reality is, if you miss payments, it can hurt your credit, much like missing payments with any other loan.' —— The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
New York Post
6 days ago
- Politics
- New York Post
Young adults are less likely to follow politics or say voting is important, new AP poll shows
WASHINGTON (AP) — Mairekk Griffiths, a 26-year-old cook in a Denver suburb, doesn't think he'll ever pay a lot of attention to U.S. politics unless radical change happens. 'If another party was likely to win, I'd be interested in that,' said Griffiths, who voted for Democrat Kamala Harris in last year's presidential race but, like many his age, does not see voting as that valuable. 'I can't say either way that voting matters,' Griffiths said. 'It's just picking the least bad option. That's what I remember my whole life — both sides are bad, but this side is less bad.' 3 College students at a voter registration table. AP Young people such as Griffiths are less engaged with U.S. politics than older Americans and less likely to say voting is important, according to a new poll from The Associated Press-NORC Center for Public Affairs Research. Young people — even those who follow politics closely — are less likely to say issues such as the economy, government spending and health care are 'extremely important' to them than comparable older adults. The findings point to a broad sense of disillusionment among younger people about the country's political system — even if, like Griffiths, they still end up casting a ballot. Alberto Medina, who leads the Center for Information and Research on Civic Engagement at Tufts University, which studies youth and politics, noted that turnout among young people hit record levels in the 2020 election and was high last year. 'There's a sense that democracy isn't working for young people. There's a lack of belief that democracy is even able to improve their lives,' Medina said. 'At the same time, we have been living in an era of high youth voting.' Disengagement from political parties and politics In another sign of their general estrangement from politics, the poll shows young adults are more likely to reject political party labels. About one-third of adults under age 30 identify as political independents who don't lean toward either major political party, compared with 17% of Americans age 60 or older. The poll also finds young people are far less likely to follow politics closely than older adults are. 3 In another sign of their general estrangement from politics, the poll shows young adults are more likely to reject political party labels. AP Only about 2 in 10 of adults under age 30 say they follow U.S. politics 'extremely' or 'very' closely, compared with about one-third of Americans overall. That's even higher among adults age 60 or older — 45% of this group says they follow U.S. politics at least very closely. Disengagement is higher among teenagers, with an AP-NORC poll from May finding 44% of teens ages 13 to 17 report following U.S. politics 'not very closely' or 'not closely at all.' Meanwhile, about two-thirds of adults under age 30 say it's 'extremely' or 'very' important to vote, compared with almost 9 in 10 over age 45 who say it's at least 'very' important to vote. Some of these habits could shift as people grow older. Younger people traditionally are less likely to vote than older people, and voter participation tends to go up with age. It's possible that engagement with politics could follow a similar pattern. Brittany Diaz, 28, follows politics closely for an unusual reason: Her oldest son, who is 7, is obsessed with the news and watches it every night. Diaz, a Republican who lives in an Albuquerque, New Mexico, suburb, acknowledges that she's unusual among her age group because she decided to start paying attention to politics when she had her first child at 20. 'Now that I have kids, I'm like, 'I need to care,'' she said. In closely following politics, Diaz is different from many other women under 30. Women in her age group are less likely than young men to say they follow U.S. politics, the poll finds. About one-quarter of men under 30 say they follow politics 'extremely' or 'very' closely, compared with 16% of women in the same age group. And about 4 in 10 young women say they follow U.S. politics 'not very closely' or 'not closely at all' compared with about a quarter of young men. Lower investment in key issues On a few issues, such as the economy and health care, the divide between the youngest and oldest Americans isn't large. About 8 in 10 Americans under age 30 say the economy is 'extremely' or 'very' important to them personally, compared with about 9 in 10 Americans age 60 or older. 3 In closely following politics, Diaz is different from many other women under 30. AP But older adults are much likelier to say topics that have taken center stage during the first six months of President Donald Trump's second term — including immigration and government spending — are 'extremely' or 'very' important to them personally compared with Americans under 30. That's even true for topics such as the situation in the Middle East, which has become a rallying cry for young activists since the Israel-Hamas war broke out. Only about 4 in 10 adults under 30 say this is highly important to them personally, compared with about 6 in 10 Americans age 60 or older. For some, that lack of interest could be related to a sense that the political system doesn't respond to their needs. At 18, Blake Marlar is just starting to pay attention to politics. As Trump's tax cut and spending bill moved through the Republican-controlled Congress, the aspiring geology major at the University of Nebraska emailed his state's two senators, both Republicans, objecting to its Medicaid cuts and increases in immigration enforcement funding. 'They didn't seem to take me seriously,' Marlar said. 'While I recognize they have to represent the whole state and the whole state doesn't agree with me, it could have been a different experience.' But he's resolved not to give up on politics: 'In the future,' he said, 'I'll do my part and vote.'
Winnipeg Free Press
6 days ago
- Politics
- Winnipeg Free Press
Young adults are less likely to follow politics or say voting is important: AP-NORC poll
WASHINGTON (AP) — Mairekk Griffiths, a 26-year-old cook in a Denver suburb, doesn't think he'll ever pay a lot of attention to U.S. politics unless radical change happens. 'If another party was likely to win, I'd be interested in that,' said Griffiths, who voted for Democrat Kamala Harris in last year's presidential race but, like many his age, does not see voting as that valuable. 'I can't say either way that voting matters,' Griffiths said. 'It's just picking the least bad option. That's what I remember my whole life — both sides are bad, but this side is less bad.' Young people such as Griffiths are less engaged with U.S. politics than older Americans and less likely to say voting is important, according to a new poll from The Associated Press-NORC Center for Public Affairs Research. Young people — even those who follow politics closely — are less likely to say issues such as the economy, government spending and health care are 'extremely important' to them than comparable older adults. The findings point to a broad sense of disillusionment among younger people about the country's political system — even if, like Griffiths, they still end up casting a ballot. Alberto Medina, who leads the Center for Information and Research on Civic Engagement at Tufts University, which studies youth and politics, noted that turnout among young people hit record levels in the 2020 election and was high last year. 'There's a sense that democracy isn't working for young people. There's a lack of belief that democracy is even able to improve their lives,' Medina said. 'At the same time, we have been living in an era of high youth voting.' Disengagement from political parties and politics In another sign of their general estrangement from politics, the poll shows young adults are more likely to reject political party labels. About one-third of adults under age 30 identify as political independents who don't lean toward either major political party, compared with 17% of Americans age 60 or older. The poll also finds young people are far less likely to follow politics closely than older adults are. Only about 2 in 10 of adults under age 30 say they follow U.S. politics 'extremely' or 'very' closely, compared with about one-third of Americans overall. That's even higher among adults age 60 or older — 45% of this group says they follow U.S. politics at least very closely. Disengagement is higher among teenagers, with an AP-NORC poll from May finding 44% of teens ages 13 to 17 report following U.S. politics 'not very closely' or 'not closely at all.' Meanwhile, about two-thirds of adults under age 30 say it's 'extremely' or 'very' important to vote, compared with almost 9 in 10 over age 45 who say it's at least 'very' important to vote. Some of these habits could shift as people grow older. Younger people traditionally are less likely to vote than older people, and voter participation tends to go up with age. It's possible that engagement with politics could follow a similar pattern. Brittany Diaz, 28, follows politics closely for an unusual reason: Her oldest son, who is 7, is obsessed with the news and watches it every night. Diaz, a Republican who lives in an Albuquerque, New Mexico, suburb, acknowledges that she's unusual among her age group because she decided to start paying attention to politics when she had her first child at 20. 'Now that I have kids, I'm like, 'I need to care,'' she said. In closely following politics, Diaz is different from many other women under 30. Women in her age group are less likely than young men to say they follow U.S. politics, the poll finds. About one-quarter of men under 30 say they follow politics 'extremely' or 'very' closely, compared with 16% of women in the same age group. And about 4 in 10 young women say they follow U.S. politics 'not very closely' or 'not closely at all' compared with about a quarter of young men. Lower investment in key issues On a few issues, such as the economy and health care, the divide between the youngest and oldest Americans isn't large. About 8 in 10 Americans under age 30 say the economy is 'extremely' or 'very' important to them personally, compared with about 9 in 10 Americans age 60 or older. But older adults are much likelier to say topics that have taken center stage during the first six months of President Donald Trump's second term — including immigration and government spending — are 'extremely' or 'very' important to them personally compared with Americans under 30. That's even true for topics such as the situation in the Middle East, which has become a rallying cry for young activists since the Israel-Hamas war broke out. Only about 4 in 10 adults under 30 say this is highly important to them personally, compared with about 6 in 10 Americans age 60 or older. For some, that lack of interest could be related to a sense that the political system doesn't respond to their needs. At 18, Blake Marlar is just starting to pay attention to politics. As Trump's tax cut and spending bill moved through the Republican-controlled Congress, the aspiring geology major at the University of Nebraska emailed his state's two senators, both Republicans, objecting to its Medicaid cuts and increases in immigration enforcement funding. 'They didn't seem to take me seriously,' Marlar said. 'While I recognize they have to represent the whole state and the whole state doesn't agree with me, it could have been a different experience.' But he's resolved not to give up on politics: 'In the future,' he said, 'I'll do my part and vote.' ___ Riccardi reported from Denver. ___ The AP-NORC poll of 1,437 adults was conducted July 10-14, using a sample drawn from NORC's probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for adults overall is plus or minus 3.6 percentage points.
