The dark side of Buy Now, Pay Later

BNPL promises you convenience, but if you’re not judicious, it will hurt your ability to borrow for more urgent needs.

Is there anything quite as seductive as the phrase “buy now, pay later”? Ever since online shopping became a pandemic-induced pastime, BNPL companies in India have multiplied, as have its users. And while credit—as a tool—is important for our collective financial growth, the rise of BNPL, especially among the millennial and Gen-Z demographics, indicates that there’s very little awareness about the dangers of casual debt.

And that’s what today’s newsletter is about. BNPL may promise you convenience—but at what cost?

Red flag 1: The easier the process, the bigger the catch 

Perhaps the biggest red flag for BNPL is how …