28% of Shoppers Plan to Use 'Buy Now, Pay Later' for Holiday Purchases. Is That a Mistake?
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From buying gifts to booking travel, the costs associated with the holiday season can really start to add up. And this year, that might especially be the case due to inflation.
If cash flow is an issue during the holidays, you may be inclined to turn to a buy now, pay later plan, or BNPL plan, to cover some of your purchases. These plans allow you to pay off purchases over time -- usually in 12 weeks or less -- rather than have to pay for them in full right off the bat. And if you stick to your BNPL plan's payment schedule, you can avoid accruing interest on your purchases.
Discover: This card has one of the longest intro 0% interest periods around
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Credit cards work differently. Unless you have a 0% interest rate on your credit card, if you carry a balance forward for even a month, you'll automatically rack up interest on it. And so it's easy to see why BNPL plans might appeal to consumers.
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