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Despite these risks, experts acknowledge that BNPL plans can serve a purpose when used responsibly. For instance, they can help manage cash flow for large purchases like fitness equipment or electronics, particularly if payments are made consistently and on time. This can be beneficial if it helps avoid high-interest credit card debt or if consumers need a temporary break in payments.
However, the key is to ensure these plans are used selectively and with discipline. They should not serve as a routine method for everyday expenses or impulse purchases.
Recommendations for Consumers
- Track your payments carefully: Because BNPL plans often don't send reminders or alerts, it’s crucial to keep an eye on repayment deadlines to avoid late fees.