Beware: Buy Now, Pay Later

Some purchases are usually bought without all the cash upfront. Like homes,

cars,

and college educations.

It is the norm that most people are going to need to finance these buys. These are more than significant, large purchases. They are either important for daily life, like a car,

(In many places, a car is a necessity for getting to work and living day to day), or they are an investment. The majority of American homeowners' wealth resides in their homes. It is a basic necessity to have housing, and it can be a way to grow wealth.

Ideally, a college education is similar in that it can be an investment in a person's earning capacity and job mobility later in life. (With the ballooning price of some college degrees, and the epidemic of crushing student loan debt, this is clearly not a given, but that's a topic for another post.)

What have never been items we all expected to take out a loan to buy? Clothes.

Books.

Electronics.

Dinner.

Don't let the name-change or promise of low or no interest fool you. The buy-now-pay-later trend looks to make what is essentially taking out a loan for everyday purchases normal. Who will suffer most if you accept this as okay? Future you.

Don't let this happen.