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Greater Nevada Credit Union Shares Tips to Avoid Buy Now, Pay Later Holiday Pitfalls
As holiday shopping ramps up, more consumers are turning to Buy Now, Pay Later (BNPL) services to stretch seasonal budgets. While these payment plans offer convenience at checkout, they can also create financial strain if not used carefully.
Michael Thomas, Chief Strategy Officer at Greater Nevada Credit Union, spoke with News 3 Las Vegas about the growing risks of Buy Now, Pay Later services and how shoppers can protect themselves this holiday season.
According to industry data, Americans plan to spend more than $1,000 on gifts this season, and BNPL usage is expected to climb to nearly $20 billion during November and December alone. The ease of splitting purchases into smaller installments can make holiday shopping feel more manageable, but it also increases the risk of losing track of multiple payment plans.
One of the biggest red flags: 41 percent of BNPL users have reported missing a payment. Even a single late payment can trigger fees or impact your credit report, especially as major credit bureaus begin incorporating BNPL activity into scoring models.
What shoppers should keep in mind
GNCU recommends approaching BNPL the same way you would any other loan or credit obligation:
- Only take on payment plans you can confidently repay on time.
- Track due dates for every BNPL purchase, especially if using multiple apps.
- Compare BNPL offers with other options, such as using a low-rate credit card or sticking to a set holiday budget.
- Review the terms carefully — “interest-free” does not always mean “cost-free.”
Shoppers looking for additional guidance on budgeting, managing expenses, or understanding how financing decisions affect credit can explore more financial education resources through GNCU’s blog or speak with a local Greater Nevada team member.
This holiday season should be filled with celebration, not surprise fees. By staying mindful of BNPL commitments and exploring safer spending strategies, Nevadans can keep their finances on track while enjoying the moments that matter.
