The convenience of buy now, pay later (BNPL) can be tempting, but keeping multiple balances in check can feel like a financial juggling act.
Late fees, hidden charges, and even collections can lurk beneath the surface of those easy installments.
From cutting back on expenses to finding creative ways to earn extra cash, here are practical strategies to help lower your financial stress and tackle your BNPL debt.
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Get a payment extension
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Some BNPL companies allow you to request a payment due date extension. For instance, you can get seven more days to pay for each purchase with Klarna. Afterpay and Sezzle also offer extensions if you contact them before your payment's original due date.
Ask your lender about hardship accommodations
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Contact your lender if you've had an extenuating circumstance that inhibits your ability to pay. They may pause your interest or make a note on your account so it doesn't get sent to collections.
Consider taking out a personal loan
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Are your BNPL charges about to go to collections? Then, a personal loan may be a smart way to preserve your credit and consolidate your BNPL charges into one payment.
Personal loans charge an average of around 11% interest, so this isn't the cheapest option, but it might be worth looking at if you need to save your credit score.
Resolve $10,000 or more of your debt
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.</p>
Sign up for a free debt assessment here.
Adjust your budget
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The cheapest (and possibly easiest) way to handle BNPL payments is to adjust your monthly budget. You may temporarily reduce your spending on groceries or reroute what you'd usually spend on eating out to take care of your BNPL payments.
Set up autopay
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Sometimes, keeping track of multiple accounts and payments is hard, even if the balances are small. Setting up your BNPL payments on autopay ensures you pay on time and avoid late payment fees.
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Cancel subscriptions
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Monthly subscriptions can be sneaky charges that siphon off money without you realizing it. The silver lining is that if you cancel the subscriptions, you can allocate those dollars to your BNPL balances without tightening your budget.
Sell unwanted items
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Consider selling items you no longer use or need when you need to get a leg up on your BNPL payments. A glance around your garage, storage unit, closet, or basement will likely produce a few things you could sell for extra money.
Take up a side hustle
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Using your spare time to drum up extra cash could help pay down your BNPL balances much faster. This could be anything from a second job to working for a gig economy app (like DoorDash or Uber) to starting your own freelancing or pet-sitting business.
Carpool
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Americans spend $150 to $200 on gasoline each month. If you could cut that amount by carpooling with a friend and splitting gas money, you would have a decent chunk to pay down your debts. Plus, it's better for the environment.
Earn cash back on everyday purchases with a debit card
Want to earn cash back on your everyday purchases without using a credit card? With the Discover® Cashback Debit account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2 <p>See website for details.</p>
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
Learn more about the Discover Cashback Checking account
Cash out your cash back
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Cash back credit cards aren't the only way to earn rewards. Cash back web browsers like TopCashBack or apps that give you PayPal gift cards like Upside or Mistplay can be used to reduce your BNPL balance. It may not be a huge amount, but every little bit helps.
Return unused items
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If you've purchased clothes, shoes, or other items hanging out in your closet with the tags on, see if the store will refund you.
Even if you don't have the receipt, many stores can look up the purchase with the credit or debit card you used. Many stores have generous return policies, so this is worth checking into.
Use category restrictions
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Is there a troublesome spending category in your budget, such as entertainment, shopping, or eating out? Try shutting it down for one month and redirect your spending to pay down your debt.
Challenge yourself to find free ways to replace these things. You may not miss them as much as you think.
Delay spending when you can
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When you're in a financial pinch, try delaying non-essential spending items for a month while you catch up on your bills.
Your dog will still love you if you wait a month to go to the groomer. Your cracked phone will probably limp along for another month while you pay off your BNPL. Delay spending only when it's prudent.
Go for the free option
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Until you get your BNPL charges under control, opt for the free version of everything you can.
For date night, go stargazing or cook dinner at home. If you want a new book, check out the library (most of them have audiobooks, too).
Check out your local Buy Nothing or Freecycle group on Facebook for clothing or household items. See how many of your needs you can fill for free.
Use a credit card with a 0% introductory rate
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If you've gotten in over your head with BNPL purchases, consider getting one of the best credit cards with 0% interest to pay them all off. To avoid repeating the cycle of debt, don't use this card for any other purchases; just pay off the balance as soon as you can.
Bottom line
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Buy now, pay later options may seem like an easy way to break up the payments for large purchases, but they can quickly get out of hand.
If you've racked up several BNPL charges, don't despair. Stack as many of these options as you can to spend less and earn a little more so you can pay off your debt faster.
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