Buy Now Pay Later (BNPL) plans have been increasingly popular as a financing option for consumers who want to purchase items without immediate full payment. These plans, however, often come with high interest rates, making them a costly choice for those already struggling financially. Recognizing the potential for escalating debt, Chase has announced that starting October 10, 2024, its credit cards can no longer be used for BNPL transactions. This move is part of Chase's broader strategy to mitigate risk and protect customers from accruing debt on top of existing credit card balances. The decision underscores growing concerns about the financial health of consumers using these plans, which can lead to significant debt accumulation due to high interest rates. Other financial institutions may follow suit as they reassess the implications of BNPL plans on consumer debt and financial stability.
Read the full article here.