Buy Now, Pay Later (BNPL) services like Klarna, Afterpay, and Affirm have become really popular, especially among Gen Z. They let you split your payments into smaller chunks, often with no interest if paid on time. Sounds good, right? But behind the easy sign-up and slick apps are some serious problems that can mess up your finances if you’re not careful.

Here are 10 reasons why the BNPL trend might not be as great as it seems.

1. It Encourages Impulse Spending
BNPL makes it way too easy to buy stuff on a whim. You don’t feel the full cost up front, so it’s tempting to get things you didn’t plan for—like that extra pair of sneakers or another tech gadget. Studies show that people spend more when BNPL is available—sometimes up to 45% more.

2. It Creates a False Sense of Affordability
Breaking a $200 item into four $50 payments makes it seem cheaper than it is. But you’re still spending the same amount. This false sense of affordability can trick you into thinking you’re making a smart financial choice, even when you’re stretching your budget.

3. It Can Lead to a Debt Spiral
Using multiple BNPL plans at once can get out of hand quickly. If you’ve got three or four active payment plans, with different due dates and amounts, it’s easy to lose track. Before you know it, you’re buried in payments with no idea how to get out.

4. It Often Comes with Hidden Fees or Late Charges
BNPL services advertise “no interest,” but they can hit you with late fees if you miss a payment. Some even start charging interest or report the missed payment to credit bureaus, which can damage your credit score.

5. It Doesn’t Help Your Credit Score (In Most Cases)
Most BNPL companies don’t report your on-time payments to credit bureaus. That means using BNPL won’t build your credit like a credit card does. But if you miss payments, they might report that—and hurt your score.

6. It Hurts Your Budget and Cash Flow
BNPL payments are usually due every two weeks. That doesn’t always line up with your payday or bills. You might find yourself short on rent or groceries because you forgot a $40 BNPL payment was coming out.

7. It Normalizes Living Beyond Your Means
When you constantly rely on BNPL to buy things, it becomes normal to spend money you don’t actually have. That’s a habit that can follow you for years and make it hard to reach bigger financial goals like saving for a house or paying off student loans.

8. It Delays Financial Growth
The money you spend on BNPL payments is money you could be saving, investing, or using to pay off higher-interest debt. The longer you rely on installment payments, the longer you delay building real financial stability.

9. It Can Be Addictive
The quick approval and delayed payment make BNPL feel like free money. That rush of getting something new without paying for it right away can become addictive. Some Reddit users have even compared it to the thrill of gambling.

10. It’s Not Regulated Like Credit Cards
Credit cards come with built-in consumer protections. BNPL doesn’t. If you’re scammed or want a refund, getting your money back can be more complicated. You’re also not covered by the same laws that protect credit card users.

What to Do Instead
If you want to buy something, save up for it first. Try using a debit card or a responsibly managed credit card to track your spending. Build an emergency fund for real needs, not shopping sprees. Use apps that help you plan your spending and avoid impulse buys. If you do use BNPL, treat it like real debt. Keep track of payment dates and amounts so you’re not caught off guard.