(InvestigateTV) — The buy now, pay later (BNPL) lending market is estimated to have grown by 2,400% since 2019, according to Statista, with consumers using the method to purchase everything from household necessities to weddings.
Ronita Choudhuri-Wade, a personal loans expert with NerdWallet, explained that BNPL can help you break up large purchases into bite-sized chunks that are paid for over four to six weeks.
Choudhuri-Wade said BNPL has its pros and cons. While it can help make a large payment more manageable, oftentimes these plans are at 0% interest and can impact your credit score.
“However, buy now, pay later is often so convenient that you can easily overspend, and you can go over budget,” she noted. “And some of the providers do have fees if you are looking at a longer repayment period.”
Choudhuri-Wade said she had seen instances in people using the buy now, pay later method to buy their wedding dress and jewelry for their big day. Some venues and caterers also offer BNPL as an option.
“If you’re managing your money correctly, if you’re sticking to your budget and you have comfortable cash flow, that buy now, pay later is not a bad option,” Choudhuri-Wade explained. “But if you are able to afford your wedding only because of buy now, pay later payment plans, you might want to consider alternatives.”
NerdWallet suggested several options for financing your nuptials instead of BNPL:
- Ask for a no interest loan from family members, if possible
- Take out a personal loan that you can pay back over a two-year term
- Open a 0% APR credit card if you can pay off the costs during the promotional term
- If you do use a credit card, make sure to use one that allows you to earn points or miles
Copyright 2023 Gray Media Group, Inc. All rights reserved.