The Rise of Buy Now, Pay Later: Convenience or Debt Trap? Buy Now, Pay Later (BNPL) has become an increasingly popular payment method in mod...

The Rise of Buy Now, Pay Later: Convenience or Debt Trap?

Buy Now, Pay Later (BNPL) has become an increasingly popular payment method in modern shopping. Instead of paying the full price immediately, (18) __________. If payments are made on time, users often avoid interest, which makes BNPL seem both convenient and affordable. As a result, services such as PayPal Credit, Affirm, and Klarna (19) __________.

However, BNPL can also lead to financial pressure. Because each instalment is relatively small, it is easy to underestimate the total cost and lose track of multiple payment schedules. Many people use BNPL for non-essential items like fashion or electronics, (20) __________. When a payment tool becomes a way to cover basic expenses, it may suggest that a person is already facing a tight budget.

The biggest risks are overspending and late fees. Breaking a price into instalments can make products appear cheaper, (21) __________. If someone misses a due date, extra charges may quickly increase the overall cost and create debt, a situation (22) __________. BNPL can be a helpful option when used responsibly, but users should monitor their spending carefully, keep track of deadlines, and avoid depending on it for essential living costs.

[Adapted from https://www.empower.com/the-currency]

Question 18: 

A. and several smaller instalments are divided into a purchase over a short period

B. purchasers can be divided into several smaller instalments over a short period

C. customers can divide a purchase into several smaller instalments over a short period

D. a purchase can divide into several smaller instalments for customers over a short period

Question 19: 

A. has successfully targeted older individuals who value secure and traditional digital payments

B. showing a strong appeal to teenage shoppers with a preference for fast mobile payments

C. provides a flexible way for wealthy investors who enjoy managing their online payments

D. are especially attractive to younger consumers who prefer quick and flexible online payments

Question 20: 

A. although others prefer spending on luxury services, such as high-end travel

B. but some now rely on it for everyday necessities, including groceries or food delivery

C. yet frequent using of digital credit for long-term investments create financial risks

D. some use it for essentials, without which their monthly budget would collapse

Question 21: 

A. persuading customers to consume less than they originally anticipated

B. permitting users to borrow more than they can eventually reimburse

C. compelling individuals to spend more than they could possibly afford

D. encouraging people to buy more than they originally intended

Question 22: 

A. whereby paying off the outstanding balance is totally unlikely

B. that maintaining a stable budget is proven to be extremely tough

C. in which it becomes difficult to stay in control of the budget

D. making it highly challenging managing their financial obligations