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Have you seen “buy now, pay later” icons as you shop online? Has your credit card issuer asked you if you want to divide a big purchase interest-free over multiple months? Have you been wondering what the benefits and drawbacks are to these arrangements? Here’s where to start with this relatively new credit option.
As is often the case in the world of personal finance, the “buy now, pay later” approach to making purchases isn’t universally good or bad. It’s a financing tool that can be used well—which is to say, to your benefit with minimal or no risk—or it can be misused.