As back-to-school spending reaches nearly $39 billion this year, many parents are feeling the financial strain and considering "buy now, pay later" (BNPL) options to manage costs. While these plans offer a convenient way to purchase school supplies without immediate payment, personal finance expert Sara Rathner from NerdWallet warns of potential pitfalls. The appeal lies in the lack of credit checks and interest charges, provided payments are made on time. However, Rathner highlights that entering multiple BNPL agreements can lead to overwhelming debt if not carefully monitored. Parents must ensure they have sufficient funds to cover each installment to avoid harming their credit scores. The ease of accessing BNPL can create a false sense of security, making it crucial for families to assess their financial situation before opting for these plans. Ultimately, while BNPL can ease immediate financial burdens, it requires careful consideration to avoid long-term debt issues.
Read the full article here.