Imagine Buying A Couple Of Burgers And Fries And Then Splitting The Cost Into Multiple Payments

Imagine buying a couple of burgers and fries and then splitting the cost into multiple payments. That’s about to become a reality for DoorDash users, thanks to a “buy now, pay later” service. Some experts warn this could encourage reckless spending, while others see it as a sign of economic strain.

News Channel 5’s Aaron Canrell gives us the tips you need to know to make good decisions about your money. Violet Andrews and Ruth Stigler are enjoying the beautiful weather by having a meal in Centennial Park. “We DoorDashed. We went into the park, and it was my first time.” Soon, they’ll have another way to pay for their food through CLA, a “buy now, pay later” service.

When customers check out on DoorDash, they’ll have three options: pay in full, split into four interest-free payments, or defer payment until their next paycheck. But some experts warn this could hurt your pocketbook down the road. Diego from West Financial, online lender and Nuestro Financial founder Diego Eguerte, says using “buy now, pay later” or BNPL for food could be a bad financial habit to have. “Uh, I don’t know.

Friends over, and you’re going to get a pizza today, and you’re going to have to pay for it for the whole month, one payment a week. I don’t think that’s the smart form of credit because you’re just risking your credit profile. And when you look at the fine print, that pizza may cost more than you expect.

But we want to pay attention particularly to interest rates, fees, and also what happens when you don’t pay. So, it’s going to be more expensive, obviously, if it takes you longer than contracted.” He says BNPL services are already very popular and can be useful but for big purchases, not fast food or groceries. “There’s so many folks that would not qualify today for a credit card, and BNPL offers a good option for that.

” In the end, it all comes down to financial literacy, something Violet and Ruth agree with. “It can be a slippery slope, especially with necessities.” In Nashville, Aaron Canrell, News Channel 5. The “Buy Now, Pay Later” service defended its business model in a blog post, saying their payment options will be for purchases over $35. They say there are no fees and no interest if you pay on time.