"Buy now, pay later" (BNPL) services are becoming increasingly popular, offering consumers the ability to spread the cost of purchases over time, often interest-free. The global BNPL market reached $129.7 billion in 2022 and is expected to grow significantly by 2030. While some BNPL plans charge a fixed fee instead of interest, others, like 0% APR credit cards, offer a grace period before interest kicks in. Credit card issuers are adapting by introducing their own BNPL plans, each with varying terms and benefits. Despite their convenience, BNPL services can encourage overspending and may come with interest charges or fees if repayments are late. It's important for users to only finance essential purchases and manage payments carefully to avoid financial strain.
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