Buy now, pay later (BNPL) services like Afterpay and Klarna have gained immense popularity, particularly among younger consumers, due to their convenience and the appeal of splitting purchases into smaller payments. However, while these plans may seem like a low-risk option, they can lead to significant financial consequences if payments are missed. If a BNPL payment goes unpaid for an extended period, the debt can be sold to collection agencies, similar to traditional loans. This can negatively impact your credit score and financial stability. It’s essential to understand your rights as a consumer and take proactive steps if your BNPL debt is sent to collections. This includes verifying the debt, negotiating payment plans, and exploring broader debt relief options if necessary. Acting quickly can help mitigate damage and get your finances back on track. Remember, even seemingly harmless payment plans come with obligations that must be managed responsibly.
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