Buy Now Pay Later: Difference between revisions

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==Why it is a problem==

Much like credit cards, this provides consumers with a false mindset in where they start to spend more than they actually have. This is due to the first initial part of the payment being a fraction of the total cost. If the consumer is not keeping track of ~~the payments~~ due ~~each month~~ (since each item being purchased may have separate agreements for when you have to pay) can lead to a Pile On effect where the customer get billed a bunch of late fees that they owe interest on because they were not able to pay the agreed upon amount. This can lead the consumer into financial ruin because they now owe the late fee (with interest if not payed immediately) plus the amount that was due ~~that month~~. This increases the chances that the next payment owed will be late. Leading the consumer into a Debt Cycle which can eventually lead to bankruptcy.

Much like credit cards, this provides consumers with a false mindset in where they start to spend more than they actually have. This is due to the first initial part of the payment being a fraction of the total cost. If the consumer is not keeping track of payment dates that are due (since each item being purchased may have separate agreements for when you have to pay) can lead to a Pile On effect where the customer get billed a bunch of late fees that they owe interest on because they were not able to pay the agreed upon amount. This can lead the consumer into financial ruin because they now owe the late fee (with interest if not payed immediately) plus the amount that was due. This increases the chances that the next payment owed will be late. Leading the consumer into a Debt Cycle which can eventually lead to bankruptcy.

==Examples==

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 ==Why it is a problem==
-Much like credit cards, this provides consumers with a false mindset in where they start to spend more than they actually have. This is due to the first initial part of the payment being a fraction of the total cost. If the consumer is not keeping track of the payments due each month (since each item being purchased may have separate agreements for when you have to pay) can lead to a Pile On effect where the customer get billed a bunch of late fees that they owe interest on because they were not able to pay the agreed upon amount. This can lead the consumer into financial ruin because they now owe the late fee (with interest if not payed immediately) plus the amount that was due that month. This increases the chances that the next payment owed will be late. Leading the consumer into a Debt Cycle which can eventually lead to bankruptcy.
+Much like credit cards, this provides consumers with a false mindset in where they start to spend more than they actually have. This is due to the first initial part of the payment being a fraction of the total cost. If the consumer is not keeping track of payment dates that are due (since each item being purchased may have separate agreements for when you have to pay) can lead to a Pile On effect where the customer get billed a bunch of late fees that they owe interest on because they were not able to pay the agreed upon amount. This can lead the consumer into financial ruin because they now owe the late fee (with interest if not payed immediately) plus the amount that was due. This increases the chances that the next payment owed will be late. Leading the consumer into a Debt Cycle which can eventually lead to bankruptcy.
 ==Examples==