Experts are raising alarms about the growing trend of financing small, everyday purchases, such as meals from services like DoorDash, through "eat now, pay later" options. While these financing methods may seem convenient, they are being labeled as predatory by financial wellness experts who warn that they can lead consumers into a cycle of debt. Career coach Ken Coleman emphasized the importance of financial maturity, urging consumers to resist the temptation to finance trivial purchases. The risks associated with these schemes include potential late fees and interest rates, which can negatively impact credit scores, especially as some lenders begin reporting these loans to credit agencies. Major companies like Affirm, Afterpay, and Klarna have capitalized on this trend, attracting financially strained consumers amid rising inflation and resuming student loan payments. Experts argue that these companies are targeting vulnerable individuals, highlighting the need for improved financial literacy to help consumers make informed decisions.
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