From PBS NewsHour.

Consumers cashing in on Cyber Monday this year spent a record $1 billion through buy now, pay later programs, according to data from Adobe Analytics.

It’s tempting during a season of giving to purchase goods immediately and pay them off over time through a loan from a third party company, like Klarna, Afterpay or Affirm.

But using micro-loans for the holidays has many risks, according to personal finance experts. Nearly one in four users have made a late payment on these loans, according to the Federal Reserve. And now some of that buy now, pay later information is shared with credit agencies, those late payments could have lasting effects.

Earlier this year, PBS News’ Tim McPhillips spoke with Michelle Singletary, a personal finance columnist at the Washington Post, about the risks of these programs and when they may offer some benefits.

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