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While many consumers may feel they can deal with future payments, this often leads to overspending. For instance, financing small purchases like $1 burritos can accumulate into substantial debt over time. A 26-year-old shared her experience, stating that BNPL felt like “free money.” Such sentiments are crucial to understanding the risks involved.
The Harsh Reality of BNPL
While the convenience of BNPL is clear, its perils are less evident until it's too late. The essence of BNPL can lead to what might be termed “debt creep.” Many consumers, without realizing it, can amass multiple monthly payment obligations, making the total debt unmanageable.