The rise of Buy Now, Pay Later

A new alternative to credit cards.

Hello Financial Healers,

There’s a new payment option in town called BNPL. You’ve probably heard of it, or seen the new checkout measures at certain stores online.

What is BNPL?

BNPL stands for Buy Now, Pay Later. It’s a payment option that allows you to “make a purchase and receive it immediately but pay for it at a later time, usually over a series of installments.”

Think of it as a payment plan. You set up a schedule of 4 or more payments (it can be more, depending on the size of your purchase), and pay these installments over time. Some of these plans have interest. Most don’t. Either way, it represents a new step in purchasing that I’m sure will only become more popular.

The downside of BNPL

Photo: NerdWallet

BNPL’s greatest weakness is that it increases your debt. Even if you find a plan with 0 interest, missing 1 installment can kneecap you with fees. It’s also easy to overspend with BNPL because you don’t see the physical cash leaving your bank account.

At Prosperous Soul, we understand that debt isn’t evil, but it is a form of bondage. If you have the cash to cover your expenses, use it. Or, utilize a credit card with great rewards, and pay it off immediately to avoid crushing interest.

God bless your Prosperous Soul,
Stephen K. De Silva

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About: Stephen K. De Silva is an author, speaker, and financial coach. From 1995 until 2017, he served as the CFO of Bethel Church, and a member of the senior leadership team. Stephen’s blend of experience, training, and gifting make him a pioneer in the subject of money. You can reach Stephen at hello@prosperoussoul.com