Today's Article

It's 2essentially a 3short-term loan from a third party and it allows you to break up the price into a few payments over time but 4buyers beware.

"All those bills are going to come due that people aren't really expecting, and they could cause some serious problems."

John Kiernan with personal finance site WalletHub says if you don't pay 5on time, you could be hit with big late fees.

"6Hunt down the 7terms and conditions, see what the exact costs are."

Unlike credit cards, many buy now, pay later plans don't charge interest.

Instead, these lenders can charge a 8flat late fee for every missed payment, and some will charge you a percentage of the 9overdue amount.

There's also not much 10oversight.

Typically, anyone over 18 can choose these options, even if you have bad credit.

And that's where consumers can get into trouble.

"Basically, the companies want consumers to spend money they don't have and not to think about it so much."

The Consumer Financial Protection Bureau warns that 11outstanding balances could be 12turned over to a 13debt collector and hurt your credit score.

So if you're not confident that you can pay on time, it's best to skip the buy now, pay later option.