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business Thursday 17 February 2022
Avoid the risks of having multiple buy now, pay later loans

By JACKIE VELING of Nerd- overdraft fees? Could you
Wallet be kicked out of the bank-
"Buy now, pay later" prom- ing system? Those are very
ises simple payment plans real consequences that
that can make financing are tied to not being able
your next purchase easy to keep up with a loan pay-
and affordable. ment," Torres says.
These plans typically divide ESTABLISH A BUDGET FOR
your total purchase into BUY NOW, PAY LATER PAY-
four equal installments with MENTS
zero interest. The first install- For borrowers who take
ment is due at checkout, multiple buy now, pay
and the remaining three later loans, the most im-
are due every two weeks portant thing to do is plan
until the loan is paid in full. your spending ahead of
But even a simple payment time, says Jordan Nietzel, a
plan can turn complicated certified financial planner
when you're juggling three based in Columbia, Mis-
or four of them at a time — souri.
a problem unique to buy If you don't already follow
now, pay later, which un- a monthly budget, start by
like other forms of financ- reviewing your income and
ing, doesn't look at similar In this June 15, 2018, file photo, cash is fanned out from a wallet in North Andover, Mass. expenses over the past
existing debts when ex- Associated Press three months to identify
tending an offer. how much money is com-
KNOW THE RISKS OF MUL- increase the visibility of buy of falling behind are any- fees, which can dig borrow- ing in and going out.
TIPLE BUY NOW, PAY LATER now, pay later on credit thing but, says Marisabel ers further into debt, others Assuming there's a surplus
LOANS reports to better track the Torres, director of California send defaulted loans to of income you want to
While certain debts like loans across lenders, while policy for the Center for Re- collections, jeopardizing spend on buy now, pay
credit cards and traditional still protecting the credit sponsible Lending, a non- borrowers' credit scores. later purchases, set a total
loans are reported to the scores of consumers who profit research and policy There are also conse- dollar limit for what you can
three major credit bureaus, may be taking out multiple organization. quences on the other side commit to monthly pay-
buy now, pay later loans loans in a short period of "There needs to be more of the transaction. Even if a ments, instead of evaluat-
typically aren't, so lend- time and successfully pay- transparency," she says. buy now, pay later provid- ing loan offers individually.
ers don't know how many ing them off. "It's not just, 'zero financing, er doesn't penalize you for Nietzel says looking at buy
loans you have outstanding For now, borrowers can zero fees.' If you miss a pay- falling behind, your bank now, pay later loans as a
and can't assess your abil- continue taking on debt ment, you will incur fees. might if you overdraw an whole is particularly impor-
ity to afford more. This will from multiple buy now, pay You will incur some type of account tied to the loan, tant since the small install-
likely change in the coming later providers. And though penalty." like a debit card. ments make the debt seem
months as TransUnion, Equi- plans may be advertised as While many buy now, pay "Could you be triggering more manageable than it
fax and Experian work to no-cost, the consequences later providers charge late nonsufficient fund fees or is. q

U.S. accuses China of backing away from free-trade commitments

By PAUL WISEMAN Tai. "China's policies and form to global norms.''
AP Economics Writer practices challenge the The U.S. trade office said it
WASHINGTON (AP) — The premise of the WTO's rules is continuing to talk to Chi-
United States has accused and cause serious harm na about "obtaining real
China of failing to meet its to workers and businesses change in its economic
commitments to the World around the world.'' and trade regime.'' And it

Trade Organization and Among other things, the is working with allies — and
says it is exploring new ways United States repeated through the WTO — to put
to combat aggressive Chi- longstanding accusations pressure on the Chinese
nese trade practices. that China uses subsidies government. Without of-
In its annual report on Chi- and regulations to favor its fering specifics, the report
nese compliance with WTO own companies at the ex- said the U.S. is also explor-
rules, the Office of the U.S. pense of foreign competi- ing new ways "to use do-
Trade Representative said tors; floods world markets mestic trade tools strategi-
Wednesday that China with cheap steel, alumi- cally as needed in order to
isn't keeping the promises it num and other products; achieve a more level play- Shipping containers are seen at a port of Kwai Tsing Container
made to open its markets to and forces U.S. and other ing field with China for U.S. Terminals in Hong Kong, Friday, Nov. 5, 2021.
foreign competition when foreign companies to hand workers and businesses.'' Associated Press
it joined the 164-country over prized technology as Voicing similar complaints
Geneva-based agency in the price of access to Chi- about China, President U.S. and China reached heartland.
2001. nese markets. Donald Trump slapped a so-called Phase 1 trade But Chad Bown of the Pe-
"China has instead re- The U.S. report said: "Chi- taxes on about $360 billion agreement in January terson Institute for Interna-
tained and expanded its na's leadership appears worth of Chinese imports to 2020. Among other things, tional Trade calculated in a
state-led, non-market ap- confident in its state-led, the United States — tariffs the Chinese agreed to step report last week that China
proach to the economy non-market approach to the Biden administration is up purchases of U.S. farm has bought only 57% of U.S.
and trade,'' said U.S. Trade the economy and trade still imposing. exports — benefiting Trump exports it had to commit-
Representative Katherine and feels no need to con- To reduce tensions, the supporters in the American ted to purchase.q