Here are some questions and answers about flexible card payment options
Spend too much on your summer vacation? Need to replace that sputtering air conditioner?
More credit cards are offering flexible payment plans for customers who want to spread out the cost of expensive items, or unexpected expenses, over several months.
Card companies say the options make it easier for their customers to borrow money and to manage their monthly cash flow.
The new options are also a response to the rise of financial technology startups, like Affirm and Afterpay, which work with online retailers to offer shoppers quick approval of monthly installment loans at the moment of purchase. Amazon also offers some customers no-cost monthly installment options, which it charges to the credit card on file with your account.
A payment plan can offer predictability in monthly budgeting, or help ease a short-term cash crunch. But before you sign up, advisers say, consider whether you are setting yourself up to habitually overspend.
Spreading out payments can make big purchases more manageable, said Douglas Boneparth, a financial planner in New York City who advises young professionals. But, he said, doing so also makes it easier to spend even more money on a credit card.
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