Buy Now, Pay Later – Part 2

Buy now, pay later usage can be dangerous.

Did you know that buy now, pay later plans can invite synthetic identity fraud? Vice President of market strategy at TransUnion says, “This is when fraudsters use a combination of legitimate but unconnected pieces of personally identifiable information to fabricate a person or entity and use it to apply for credit with a low bar to entry, like buy now, pay later plans…After a synthetic identity is established and begins to build credit, institutions often have no idea what their real level of exposure is.” Proper reporting would reveal fraud. In addition, responsible buy now, pay later users could improve their credit score which would enable them to gain access to other credit products, even securing a mortgage, but “Buy Now Pay Never” is how some have begun to refer to these plans. Yet, buy now, pay later plans are an entry point for some to gain access to credit cards. This will create more issues unless users have the discipline to pay them off at the end of every month.

Many are in debt today because they haven’t managed their funds wisely. They know the reality of Proverb 22:7, “The borrower is the slave of the lender!” Applying Biblical financial principles to everyday life and teaching others likewise will bring much-needed attention to our growing debt problem. Training in responsible spending is necessary for people everywhere. When people begin to acknowledge that everything belongs to the Lord, they will gain a mindset of wise stewardship.

Our budget coaching program can put you on the road to financial freedom. Go to crown.org and click the “Get Help Now” tab, and if you would like to become a volunteer budget coach, you can start today at crown.org.