PALM BEACH COUNTY, Fla. — Due to rising inflation, many consumers are flocking to the popular “buy now, pay later” option.
However, credit repair experts are warning of the dangers of missing a payment and how that affects interest rates.
Whether you’re shopping online, shopping in a store, gassing up your tank, or trying to buy a home, inflation is breaking the bank all across the board.
“It was my first adult purchase, so I’m very happy about it,” Palm Beach County resident Hellen Valleau said.
She’s talking about her recent decision to purchase an electric car to save money on gas.
“It’s actually not that expensive. It’s affordable,” Valleau said.
Hellen Valleau says she recently purchased an electric car amid rising gas prices.
Palm Beach County resident Nora Ortiz told WPTV she also recently made a decision about how she gets from point A to point B.
“Right now, I’m getting places with my electric bike, which is saving me a lot of money,” Ortiz said.
Saving money is something pretty much everyone is trying to do right now.
“Right now, it just seems that it’s ugly and getting uglier by the day,” Paul Oster, president of credit repair firm “Better Qualified,” said.
Nora Ortiz uses an electric bike to get around town in an effort to save money on gas.
Oster said inflation is pushing more and more consumers toward the slippery slope of buying now and paying later.
He said, according to a new survey, 40% of people who are taking out loans right now are missing payments, which greatly affects their interest rates, increasing them as high as 30%.
“You don’t have the ability to make a minimum payment,” Oster said. “You have to make that fixed payment or you default on the loan.”
When it comes to home buying, many people in South Florida are flocking toward a new type of program where mortgage companies are paying for the home in cash for the buyer and then bringing in the financing behind it.
Paul Oster tells consumers to be wary of the “buying now and paying later” option.
Oster warns consumers who consider this option to look closely at their financial situation.
“Sometimes, we have to hold ourselves accountable, and the reality is maybe it’s not the best time to buy a home right now,” Oster said. “Don’t get involved in these crazy schemes. If you can’t afford a 30-year fixed mortgage at this point in time, do not buy a home.”
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