With high prices just about everywhere, data shows half of Americans are turning to "buy now, pay later" apps to buy everyday products, including groceries.
While they may be convenient, experts warn there are some drawbacks.
Some are calling it a new version of layaway, except instead of the store holding an item for you until you pay it off, you can buy it instantly and pay it off later. It's an easy way to buy items if you don't have the money all at once and most of the apps separate what you're buying into four easy payments.
Unlike a credit card, most apps don't accrue interest. But Stewart Willis with Asset Preservation Tax & Retirement Services warns you are collecting debt and if you miss a payment, some of the apps have big fees.
"Obviously, it makes access to money, access to things you need immediately," he said. "But just remember the people who need it most importantly are the ones that are most susceptible to this kind of abuse as well. So, we don't want you to get in over your head. We want you to have a real plan and at the end of the day it's always best to pay in cash."
He recommends reading the fine print and knowing exactly what you're getting into before you buy.
