(KNSI) – Buy now, pay later can look tempting, particularly as you finish off the last of your holiday shopping.
The trend is not confined just to big ticket items, though, and now Walmart’s website or Amazon are filled with installment payment options for even everyday purchases. Financial Counselor Janelle Engelsrud says it could be a potentially costly mistake if you rely on installments for things like a pair of jeans.
“Those different agencies that have those plans in place, those jeans end up costing double or triple with the added fees.”
Engelsrud says the manageable monthly charges are often masking the devil that is in the details of these financial agreements.
“My recommendation is if you can avoid them, do it. But really check out the terms and the conditions regarding that before you sign up for anything.”
Engelsrud says she also advises people on ways to set aside more money through saving. She says that has become a struggle this year as inflation has forced people to utilize credit cards and other methods just to make ends meet.
Englerud works with The Village Financial Resource Center in Fargo, North Dakota. The company offers online counseling for clients in the Dakotas and Minnesota. It has a St. Cloud office that specializes in family therapy and parenting classes.
Grant Dossetto/KNSI