The holiday season often leads to increased consumer spending, with the National Retail Federation predicting an average of $902 per person this year. Many shoppers are turning to "buy now, pay later" (BNPL) plans to manage their purchases, which allow them to split payments into smaller, more manageable amounts. While these plans can provide immediate access to goods without the burden of high-interest credit cards, experts warn they can also encourage overspending and impulsive buying behaviors. Financial coach Maureen Paley highlights the lack of consumer protections associated with BNPL loans, as they are not reported to credit bureaus and may not offer the same recourse as traditional credit cards. Shoppers are advised to carefully read the terms of their agreements to understand payment deadlines, potential fees, and interest rates. As the federal government investigates the implications of these plans, consumers are urged to exercise caution and stay informed about their financial commitments.
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