It seems like it’s the simplest option: make a big purchase now and pay it off over time. And once upon a time, this might have been your best bet, especially if the purchase was priced higher than you could afford at the time.
But these days, the option to buy now and pay later has become increasingly available and that button looks more tempting than ever. Services like Klarna, Afterpay and PayPal Later all give you the option to take your time with the payments. But what happens when you click that option one too many times, and your loans begin to pile up?
If you’re tempted to use that option or you want to learn how to better manage your loans, keep reading about how to use the buy now, pay later option more carefully.
Why buy now, pay later has become so popular
Over the past few years, the option to make a purchase and pay it off later has become a popular choice, especially when the purchases were for essential items. But lately, this option has become available for minor, unessential purchases, like concert tickets or even clothing.
If you have become all too familiar with the pay-later option, you might be racking up a few more bills than you realize. Now, these loans are being reported to the major credit reporting bureaus and can have an impact on your FICO credit score.
Steps to use buy now, pay later safely
There are a few ways you can be more cautious about your use of buy now, pay later and avoid owing large sums of money.
Is it worth it?
One of the simplest ways to keep your buy now, pay later purchases to a minimum is to more carefully examine whether the purchase is necessary. If you are buying a dress just for the sake of buying it and need to use the buy now, pay later feature, it might be best to hold off until you can purchase it in real time. Having to owe the money back for something like that, no matter how cheap or expensive, can add up very quickly and before you know it, you owe a lot more than you think.
Read the small print
Second, make sure you understand the agreement you’re entering. If you’ll recall the episode of Full House when Stephanie thought she could buy a sweater and pay for it later, she didn’t know the sort of agreement she was entering. Don’t be like Stephanie—make sure you are reading the fine print. Taking part in the buy now, pay later is still entering into an agreement. You need to be sure you understand the payment schedule
Keep track of your loans
Third, make sure you’re keeping track of everything you owe. Repaying loans can be a convoluted process, especially if you have them spread out over multiple cards and are losing track of what you owe.
If you are someone with more than one or two loans (because who isn’t?), make sure you are keeping track of everything. For example:
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Written Log: Use a notebook or planner to jot down the purchase date, the BNPL provider (like Klarna or Afterpay), the total owed, the number of payments remaining, and the due dates. Keep it somewhere you’ll see it often, like your desk or kitchen counter.
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Spreadsheet: Create a simple Google Sheet or Excel file with columns for “Purchase,” “Total Amount,” “Monthly Payment,” “Due Date,” and “Status.” Color-code overdue items in red so you can see trouble spots at a glance.
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Apps: Try money-management tools like Mint, YNAB (You Need a Budget), Truebill/Rocket Money, or BNPL-specific trackers like Sezzle’s in-app payment schedule or Klarna’s payment reminders. Many of these can send push notifications before a payment is due.
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Calendar Alerts: Add each BNPL due date to your phone’s calendar with a reminder set for 2–3 days before the payment is taken.
By keeping all this information in one place — whether digital or paper — you’ll avoid the “wait, how many payments do I have left?” panic that can sneak up when you juggle multiple BNPL purchases.
