Seth Ketron, associate professor of marketing at the University of St. Thomas, spoke with WCCO about the growing use of buy now, pay later services as holiday shopping ramps up. Ketron cautioned that while the plans can help consumers manage upfront costs, missed payments and overlapping purchases can quickly lead to financial strain.
From the story:
Buy now, pay later plans are becoming more popular for shoppers this holiday season.
The popularity of companies that offer the financial option, including Klarna, Afterpay, and Affirm, is on the rise.
A recent survey by LegalShield found that more than 75% of Americans have used a buy now, pay later plan to finance a purchase.
“You can buy something that’s more expensive without taking on the kinds of interest that you would see with credit cards,” Seth Ketron, associate professor of marketing at the University of St. Thomas, said.
The survey also said that nearly half of those people who have opted into a plan have missed a payment. Ketron urges consumers to think before they spend.
“It can become easy for people, especially if they’re doing multiples of these, to lose control,” he said.
