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A12 BUSINESS
Monday 16 January 2023

Millennial Money: 5 tactics to pay buy

now, pay later debt

By MELISSA LAMBARENA
of NerdWallet
Chances are that your "buy
now, pay later" bill from the
holiday season will arrive
soon or has already made
its debut.
If you're not financially pre-
pared to pay up, late fees
or other charges can bury
you deeper in debt. Cir-
cumstances can change
over a matter of weeks
through financial setbacks This June 19, 2015 file photo shows the seal of the U.S. Securities
like unemployment, an and Exchange Commission at SEC headquarters, in Washington.
unexpected bill, a fam- Associated Press
ily emergency or other
events. When you're feel- Klarna customers using a er), a few issuers may offer
ing the financial squeeze of pay-in-four loan can ex- a 0% introductory annual
those pay-in-four buy now, tend the due date of a percentage rate on a bal-
pay later plans — and pos- payment for each order ance transfer credit card
sibly other debts — it's im- once by 14 days, accord- to be used to pay buy
portant to create a plan to ing to the company's web- now, pay later debt. That
pay down balances. site. Afterpay may provide might buy you some time if
Here are a few options to more leeway, allowing you're struggling to meet a
consider as you strategize changes to the payment plan's payment deadlines,
your way out of debt. due date up to six times per but there are some things
1. UPDATE YOUR BUDGET year in the app, according to know. Balance transfer
Review your budget and to Amanda Pires, a com- credit cards are designed
trim unnecessary expenses pany spokesperson. to help you save on interest
or swap services for less 3. COMMUNICATE WITH charges for a designated
costly alternatives. Can- LENDERS ABOUT HARDSHIPS time frame, so they might
cel unused subscriptions, If a financial setback or not make sense for certain
for example, or switch to a emergency keeps you from buy now, pay later plans
cheaper streaming service. making payments, the buy that don't charge inter-
If you're also struggling now, pay later lender may est to begin with. Plus, you
with credit card debt that offer some relief. can move a balance only
may take three to five Major buy now, pay later as high as the card's credit
years to pay off, consider companies with hardship limit allows, and there's
consulting an accredited policies typically encour- typically a fee charged on
nonprofit credit counsel- age you to contact cus- the amount you transfer,
ing agency about a debt tomer service as soon as usually between 3% and
management plan, which possible about hardships. 5%. Compare potential
can consolidate some bal- "Affirm users experiencing buy now, pay later costs
ances into a single low-in- financial hardship can con- against these factors.
terest payment. Note that tact us through our help The process and terms will
accounts enrolled in the center so we can work with vary among the card issu-
plan are typically required them to identify an avail- ers that allow this, so ask
to be closed, which could able repayment option what to expect. Wells Far-
affect your finances in the that best meets their per- go, for instance, may al-
short term. sonal needs," Casey Beck- low you to use a balance
2. CHANGE YOUR PAYMENT er, a company spokesper- transfer to pay buy now,
DUE DATE son, said via email. pay later debt.
Some lenders like Klarna Terms vary by lender. "The most common prac-
and Afterpay allow you to 4. CONSIDER A BALANCE tice is to transfer balances
change the payment due TRANSFER CREDIT CARD from another credit card
date or request an exten- If you have good credit (a issuer to their Wells Fargo
sion. FICO score of 690 or high- account to save on inter-
est," Sarah DuBois, a Wells
Fargo spokesperson, said
via email. "If there is a cred-
itor that is not technically
considered a retail or bank
card issuer, customers do
have other options for how
to take advantage of their
balance transfer offer (i.e.
using a balance transfer
check that is generally is-
sued with the offer)."q