Credit repair experts warn of the ‘buy now, pay later’ trend

PALM BEACH COUNTY, Florida – Due to rising inflation, many consumers are flocking to the popular “Buy now, pay later” option.

However, credit repair experts warn of the dangers of missing a payment and how it affects interest rates.

Whether you’re shopping online, shopping at a store, filling up the gas tank, or trying to buy a house, inflation breaks the bank on every level.

“This was my first adult purchase, so I’m very happy with it,” said Palm Beach County resident Hellen Valleau.

She talks about her recent decision to buy an electric car to save money on gas.

“It’s actually not that expensive. It’s affordable,” Valleau said.

Palm Beach County resident Nora Ortiz told WPTV that she also recently made a decision on how she would get from point A to point B.

“Right now I’m gaining places with my e-bike, which saves me a lot of money,” Ortiz said.

Saving money is something almost everyone is trying to do these days.

“Right now, it just seems like it’s ugly and getting uglier by the day,” said Paul Oster, president of credit repair company Better Qualified.

Oster said inflation is pushing more and more consumers down the slippery slope of buying now and paying later.

He said that according to a new survey, 40% of people taking out loans right now miss payments, which significantly affects their interest rates, raising them by up to 30%.

“You don’t have the ability to make a minimum payment,” Oster said. “You have to make this fixed payment or you fail to repay the loan.”

When it comes to buying a home, many people in South Florida are turning to a new type of program where mortgage companies pay the home in cash for the buyer and then provide the financing behind it. .

Oster warns consumers considering this option to take a close look at their financial situation.

“Sometimes we have to hold ourselves accountable, and maybe the reality is that now might not be the best time to buy a house right now,” Oster said. “Don’t get involved in these crazy schemes. If you can’t afford a 30-year fixed mortgage at this point, don’t buy a house.”

The people WPTV spoke to, like Ortiz, take that advice.

“I’m playing it safe right now, I’m playing it pretty safe,” Ortiz said.