5 ON YOUR SIDE: Buy now, pay later

Buy Now, Pay Later is becoming an increasingly popular way to borrow, especially as many consumers look for ways to stretch their budgets. These plans may seem more convenient than traditional credit, but they can also make it easier to take on payments that may be harder to afford later. And with holiday spending picking up, Consumer Reports says it’s important to understand the risks before signing up.

With household budgets under pressure, more consumers are turning to Buy Now, Pay Later. According to the Federal Reserve, about one in six adults used these loans in the past year. People like Buy Now, Pay later, because it allows a purchase to be split up into smaller payments without having their credit score checked.

And it’s no longer just for online retailers. Consumers are using Buy Now, Pay Later loans for groceries, food delive...