Can I Settle “Buy Now, Pay Later” Debt?

Are you among the approximate 50 percent of Americans who have used a “buy now, pay later” plan? According to a recent article in The New York Times, these layaway-style credit plans have become extremely popular. The plans allow consumers to “purchase” an item up front but to delay payments for weeks, months, or even longer while being responsible up front for anywhere from $0 to a small portion of the total price of the purchase.

While “buy now, pay later” is being used more than ever before, it is also a service that is putting consumers in Georgia and across the country in debt. It seems easy enough up front, but thousands of consumers are struggling to make the payments as they come due. What are your options to manage this type of debt? Debt settlement could be one solution. Our debt settlement lawyers in Lilburn can tell you more about this rising type of debt and how debt settlement might help you.

Debt Problems with “Buy Now, Pay Later”

Why has the “buy now, pay later” model become so problematic? According to the Times article, approximately half of the debtors who take advantage of these options are “early career individuals under the age of 33,” many who do not actually earn enough to repay the debt they will ultimately owe. Many of the plans also come with very high interest if buyers pay over extended periods of time, and missing a payment can result in significant fees.

Between 2019 and 2023, consumer debt associated with “buy now, pay later” plans rose from about $2 billion to approximately $120 billion. Since then, this debt has continued to rise. And more goods and services have become available for purchase through these models, too. As the Times underscores, consumers can buy groceries and makeup, major appliance and furniture purchases, designer clothing, plane flights, cruises, Airbnbs, and even tickets to Coachella.

Settling “Buy Now, Pay Later” Debt 

If you are struggling with “buy now, pay later” debt, you may be wondering if this type of debt can be settled. In short, the answer is yes, it can, depending on the circumstances. As a recent report from CBS News explains, most types of unsecured debt, including debt from “buy now, pay later” plans, can be settled under the right circumstances.

When any type of unsecured debt is settled, the process generally works like this: your lawyer and creditor negotiate an agreed-upon amount that you will pay, typically in a lump sum. That amount is only a percentage of what you actually owe. In exchange for your agreement to make that payment, the creditor forgives your remaining debt once it receives your payment.

Contact a Georgia Debt Settlement Attorney for Assistance Today

Debt settlement is a process that can allow consumers to pay off a portion of their debt and get a fresh start for nearly all types of unsecured debt. Are you struggling with one or more major purchases you bought through a “buy now, pay later” company like Affirm or Afterpay or Klarna? Or are you struggling with credit card or personal loan debt or medical debt? An experienced Lilburn debt settlement lawyer at Konn Law Firm LLC can discuss your options with you today. We may be able to negotiate a debt settlement agreement with your creditor that can allow you to avoid future interest charges and late fees, and to get out of debt sooner. Contact our firm for more information about how we can assist you.

Sources:

nytimes.com/2025/10/07/magazine/buy-now-pay-later-klarna-affirm-shopping.html

cbsnews.com/news/are-buy-now-pay-later-plans-eligible-for-debt-forgiveness/