Buy Now, Pay Later (BNPL) plans offer immediate gratification by allowing consumers to purchase goods immediately and pay in installments, often without a high credit score requirement. However, the ease of obtaining these loans can lead to "loan stacking," where a consumer takes on multiple loans from different BNPL providers without them being aware of each other. This can accumulate substantial debt quickly, as payments for multiple purchases overlap. While BNPL might seem convenient, it can encourage spending beyond one's means, leading to financial strain. Consumers are advised to save for purchases instead, fostering better long-term financial habits and stability.
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