Buy-now, pay-later (BNPL) plans are increasingly popular, offering consumers a way to manage unexpected expenses without the immediate financial burden. Sheree Davis, a user of BNPL, finds it beneficial for budgeting, allowing her to make necessary purchases in manageable installments. She emphasizes the importance of setting limits, keeping payments under $60, and opting for short payment durations. Financial expert Dionne Motley, however, advises caution, suggesting that while BNPL can be helpful, traditional methods like saving or using credit cards with rewards might be more advantageous in the long run. Motley acknowledges the financial pressures many face and recognizes that BNPL can provide flexibility, especially since many plans do not charge interest and only perform soft credit inquiries. Ultimately, the effectiveness of BNPL depends on individual financial situations and the discipline to use it responsibly, balancing convenience with the risk of overspending.
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