(WTNH)– Just in time for holiday shopping, Target announced it’s joining the growing number of retailers, allowing customers to buy-now-pay-later, a new kind of trend of an installment plan.
Today we are stretching your dollar with a different way to make purchases during the holidays.
“Consumers are really worried about whether or not they’re going to be able to get their products in time for Christmas,” said Hitha Herzog, chief research officer at H. Squared Research. “So when you see a buy now, pay later, you can get your products right now. You don’t have to worry about the shopping rush.”
Buy now, pay later, is especially appealing to younger shoppers and people who don’t have credit cards. Experts warn there are some pitfalls.
“The payments are interest-free if you pay on time. If you miss a payment, or you don’t pay, they’re gonna charge you late fees,” said Herzog.
Many stores will entice you with their store credit cards this holiday season too, and those typically come with higher interest rates. You should go into the season knowing if you can take on another card and the responsibilities, rather than making a quick decision at the register when it’s different to you bundled with tempting savings.