Buy Now, Pay Later (BNPL) plans are marketed as zero-interest, bite-sized payment options, but BIF instructor and BIF Bites host, Jerry Mee unpacks the hidden costs and behavioral traps behind the trend. In this episode, he traces BNPL’s roots back to department-store layaway, explains why merchants happily eat 5% fees to boost sales, and warns that missed payments can push effective rates to 300%. Jerry also highlights debt-stacking, Gen Z’s 66% default rate, and the social-media mindset of “just declare bankruptcy” that fuels overspending. There may be safer alternatives, and he provides advisors with insight into discussing BNPL risks.
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