How buy now, pay later can wreck your budget, experts say

A buy now, pay later plan can seem like a smart financing option, but it comes with some major downsides. Getty Images

Despite inflation showing signs of cooling overall over the past year, the inflation rate has been ticking back up over the last few months. As a result, the cost of everyday essentials remains steep for many Americans. Against this backdrop, millions have turned to buy now, pay later (BNPL) services , such as Afterpay, Klarna and Affirm, to finance purchases both in-store and online.

Buy now, pay later plans work by splitting a purchase into smaller installments, usually with no interest charges for on-time payments. For cash-strapped shoppers, this option can seem like a smart way to budget. But financial experts warn that BNPL carries hidden risks that could d