For Americans, convenience of buy-now-pay-later services come with risks

Krista Michels can’t get enough of the online services that allow American shoppers to pay for everything from Christmas presents to monthly bills without fees, known as “buy now, pay later.”

“I’m kind of addicted now,” said the young mother in Washington state.

She first turned to these solutions offered at check-out stores or online to rebuild her credit rating, which was too low to access a traditional credit card.

Michels now uses them whenever possible, at the supermarket or to pay her internet bills.

Startups like Affirm, AfterPay, Klarna and Sezzle usually allow consumers to pay for a purchase in four installments without fees or interest, like a typical credit card but without the associated paperwork and the complexities of fees and interest payments.