Small, everyday purchases like a meal from DoorDash are now able to be financed through eat now, pay later options \u2014 a practice that some experts deem “predatory.”<\/p>\n
“You’ve got to have enough sense to not follow the urge to finance a taco, okay? You have got to be an adult,” career coach Ken Coleman told “The Big Money Show,”<\/a> Wednesday.\u00a0<\/p>\n “This is predatory, and it’s going to get a lot of people in deep trouble.”<\/p>\n RISKS OF BUY NOW, PAY LATER: ‘TICKET TO OVERSPENDING,’ EXPERT SAYS<\/strong><\/a><\/p>\n Financial wellness experts are continuously sounding the alarm to cash-strapped consumers, warning them of the devastating impact this financial strategy could have on their credit score as some lenders will begin reporting those loans to credit agencies.<\/p>\n Consumers may risk getting hit with late fees and interest rates, similar to credit cards.\u00a0<\/p>\n “So your sandwich might show up on your FICO score, especially if you pay for it late,” FOX Business’ Jackie DeAngelis explained.<\/p>\n EXPERTS WARN HIDDEN RISKS OF BUY NOW, PAY LATER<\/u><\/strong><\/a><\/p>\n Major players like Affirm, Afterpay, and Klarna have risen to prominence at a time when Americans continue to grapple with persisting inflation<\/a>, high interest rates and student loan payments, which resumed in October 2023 after a pause due to the COVID-19 pandemic.\u00a0<\/p>\n “The Big Money Show” co-host Taylor Riggs offered a different perspective, suggesting that company CEOs have a “duty”<\/a> to attract as many customers as they want.\u00a0<\/p>\n “Unfortunately for me, this always comes down to financial literacy \u2014 which I know is so much in your heart about training people to save now by later,” she told Coleman, who regularly offers financial advice to callers on “The Ramsey Show.”<\/p>\n