As summer approaches, many Americans are eager to book vacations but may face financial constraints. A growing trend is the use of Buy Now, Pay Later (BNPL) loans, which allow travelers to finance their trips through manageable installments. In 2023, over 95 million Americans utilized these loans, particularly for travel, due to their quick approvals and minimal credit checks. However, experts like Consumer Reports' Lisa Gill caution that these loans come with significant risks. Unlike traditional credit cards, BNPL loans often lack consumer protections, making it difficult to recover funds if a trip is canceled or delayed. Additionally, while some BNPL options offer interest-free payments, others may impose steep interest rates, leading to unexpected costs. Travelers are advised to read the fine print carefully and consider using credit cards instead, which typically provide better consumer protections and easier refund processes. Ultimately, saving in advance is the safest way to avoid potential debt.
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