Do you have to use Doordash Klarna to buy now, pay later?

I am undoubtedly the target audience for Doordash’s new controversial partnership with clanwhich allows customers to pay for items from the platform in four installments. There was a time when a loan for Pad Thai would tempt me.

It would also make me difficult. Order of food online It has always been my pleasure to guilty and I cut it out of my budget was one of my first personal #RecessionindicatorsS

Clana and others Buy now, pay later Services may seem like an intelligent way of financing things we can’t afford, especially because most of these plans are not interested. But this appeal is exactly why they can be insidious. To be able to pay a small amount now, and the rest later can make it easier to press this “Order” button. People are excellent in focusing on here and now and discount the consequences along the line.

When it was announced, the DOORDASH-KLARNA deal received a fair dose of criticism, with online memory being “Burrito Bonds” and “Eat Now, Pay Later.”

Critics also rightly saw the short -term loan offering as an indicator of difficult economic times and a way to take advantage of people who are just trying to survive. Historically, installment plans have been launched as a flexible payment option for expensive items such as appliances and equipment, not for grocery or basic things.

“The more we normalize them, the more dangerous it becomes,” said Jen SmithCnet money member of the Council for Expert Reviews And co -author of buying what you love.

Here’s what to keep in mind the next time you are thinking of using a BNPL application, whether it is a delicious little treat or something more.

Read more: People fund food and basic things, CNET Survey discovers. How to reduce food costs

Not so easy solution

BNPL is directed as a convenient and flexible way for money -bound users to simplify money management. But this can cause budget strains, especially for households that are struggling to connect the edges.

I tried plans for BNPL at the beginning and my biggest slipping I forgot to include the payments in my monthly cost plan. I think I had extra money to spend in the category, but then the contribution will be automatically repaired by my account and I would suddenly overcome my budget.

If you do not pay much attention, future payments can fix your account, which leads to delayed fees or you may need to place other credit card purchases. You can also finish the missing payments. The more you finance, the more contributions for compliance (or loss).

Slope

If there is anything you can’t pay for at the moment, BNPL can help you get it without applying interest rates with a credit card. This can help reduce debt with a large interest rate debt and credit card balance, right?

Not necessarily. Financial experts warn that excessive use of BNPL can lead to even more debt. Regardless of how they are packed, installment plans give the illusion that we can afford something that we may not actually have enough money to pay off. This is why BNPL can easily become a trap for any SalaryS

Plus, the convenience of a payment plan can prevent us from trying more expensive options. For example, Doordash says it offers more than the delivery of restaurants – you can also use it with Klarna for needs such as grocery. But it would be less risky to use grocery applications discounts Flashfood or Too good to go If we can’t afford products or closets.

When we divide the purchase into installments, it can also convince us to spend more than we have intended. Say you have provided $ 50 for clothes for your children, Smith said. BNPL makes it easier to say, “Well, I would spend $ 50, but now I can spend $ 75 because I can break payments.”

BNPL is rarely a good idea

Unfortunately, we have no control over the high cost of living. I struck a rock bottom Before and I know we often make a choice of financial despair. Sometimes they don’t feel like a choice at all.

But if you just have the opportunity to use BNPL to order from your favorite restaurant, I would advise against it.

Even if you use contribution plans carefully and strategically – ie, spend only what you can afford to pay the line – you can miss other, more useful resources.

“If you feel financially deliberate to use BNPL responsibly, there are better options for you,” Smith said. For example, charging something for a trip prizes or a credit card of money back, and then paying it off, it can entirely allow you to accumulate rewards points that you can use for other purchases. If you are worried about carrying a balance on your card and accumulating debt from interest fees, check out a Intro card 0% AprilS

If your only option is BNPL because you have no credit history or sufficient income and do not meet the credit card requirements, try to explore alternatives like CardsS

The next time I crave Pad Thai, I plan to pay in advance. I can even call the restaurant directly and take it to avoid delivery fees and other fees. If there is one thing that is DOORDASH’s new offer for me, it has made me more careful how I use it.

Read more about our BNPL coverage