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Is it OK to buy now, pay later? |
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While holiday shopping, you might have seen the option to buy now, pay later (BNPL) through companies like Klarna or Afterpay.
This option might seem convenient, especially for unexpected or expensive purchases. But experts say that just like any form of credit, BNPL loans come with risk.
If you don't pay back a BNPL loan, it can get sent to a debt collector. From there, it can be reported to credit bureaus. Those missed payments could hurt your credit score.
Here are three tips from finance experts on how to use BNPL responsibly. |
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DON'T use BNPL if you can't pay the full amount. Follow the cardinal rule of borrowing money when it comes to BNPL loans: Make sure you can pay it back.
Be especially wary of using BNPL if you're already in credit card debt, or don't have the money to cover the payments.
But if you have the money to make the payments, go for it, says Felix Aidala, a former senior research analyst who studied BNPL loans at the New York Federal Reserve.
DO avoid taking out multiple BNPL loans at the same time. It's easy to borrow too much and lose track of how much you're paying and when you'll be paying it.
"All those debts add up in a way that's not easily visible," says Lauren Saunders at the National Consumer Law Center. "You don't get a simple, clear statement showing how much credit you've taken out when your payments are due."
One way to guard against this is to take out BNPL loans from only one lender so all your payment plans are in one place, Aidala says.
DON’T just buy something because buy now, pay later is an option. Buying on impulse can lead to buyer's remorse, says Bob Sullivan, journalist and author of Gotcha Capitalism.
One way to head off regret, Sullivan says, is to imagine talking with your future self looking at all those bills. That could help you get a grip on what your purchase means over the long term. |
More smart money tips from Life Kit |
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5 smart habits to keep you out of credit card debt. Stay on top of your monthly payments and avoid costly fees and interest charges with these smart credit card strategies. Read the story.
11 ways NPR readers resist the impulse to shop (plus, a poem for inspo). Buying something new can be thrilling in the moment, but will you still be glad you bought it after the fact? NPR readers share their top tips for mindful shopping to avoid regret and overspending. Read the story.
A big misconception about debt — and how to tackle it. Life happens, and so does debt. Unexpected car trouble, the high price of food, a family emergency — there is no shortage of reasons why debt can pile up. In this episode, we offer shame-free solutions for digging out of debt. Read the story (and watch the video!)
Should you buy it? If you answer 'yes' to these questions, probably not. Sometimes we want to buy things we want, not what we need, and that's OK. When you're unsure whether to swipe that card or walk away, this guide can help you make a mindful decision you won't regret. Read the story. |
This year, the NPR Podcast Newsletter team launched the NPR Pod Awards. It's a fun roundup of some of NPR's standout episodes, (including our episode on how to find an accountability buddy, which earned the “OK, I’ll Try It!” Award).
Here are a couple of intriguing episodes from our friends around NPR. You may discover a new podcast you haven’t listened to before.
The Honorary Ph.D. Award: How much for that egg by Planet Money
Remember the Great Egg Shortage of 2025? At a time when a dozen eggs cost a whopping $12, an NPR staffer with a hen farm found himself with plenty of eggs to spare. But what’s the best way to sell scarce goods fairly? Leave it to Planet Money to give him (and us!) a master-class on price-setting. Listen to the episode here.
The Rabbit Hole Award: Inside a top-secret U.S. nuclear facility by Short Wave
At a time when the world may be returning to testing nuclear weapons, NPR’s Geoff Brumfiel took a tour of a secretive underground nuclear research facility in Nevada. Listening to this episode feels like reading a Cold War Spy novel. It sparked countless Wikipedia rabbit holes, including “could there be a teensy-tiny nuclear weapon?” (It turns out… no.)
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How to cope if you can’t find a job. Long-term unemployment can lead to more than just financial worries. It can weigh on relationships and affect your self-esteem and motivation. Financial therapist and licensed clinical social worker Dev Valdez shares advice to protect your mental health while you're between jobs, especially if you've been out of work for an extended period. Listen to the episode. Dear Life Kit: I have the same holiday drama with my family every year. The holidays bring all kinds of family drama: the sibling who won't compromise, the grandparents who won't travel and different expectations of everything from etiquette to hygiene. Expert negotiator Bob Bordone and therapist Sahaj Kaur Kohli answer questions from Dear Life Kit listeners about how to handle holiday stress at family gatherings. Listen to the episode.
How to get a great haircut. Getting a good haircut can take some trial and error. Three professional stylists break down how to find a salon you can trust, what a successful consultation looks like, and how to walk out loving your new cut. Listen to the episode. |
🥀 How to talk about dying
🎁 Gift giving
🍷 Take a break from alcohol |
We'd love to hear from you. Leave us a voicemail at 202-216-9823, or email us at LifeKit@npr.org.
Listen to Life Kit on Apple Podcasts and Spotify, and sign up for our newsletter. Follow us on Instagram: @nprlifekit. |
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