Rent can eat up a whole paycheck at the start of the month, so more renters are turning to a financial product that promises relief by letting them split the bill up, though for.
Rent can eat up a whole paycheck at the start of the month, so more renters are turning to a financial product that promises relief by letting them split the bill up, though for a price. “Rent now, pay later” services have emerged over the past few years as housing costs climb and paychecks grow less predictable, particularly for lower-income and gig-economy workers, per the AP. Companies such as Flex, Livble, and Affirm say breaking rent into multiple payments can help renters manage cash flow. But consumer advocates warn the products typically function like short-term loans, layering fees onto already strained budgets and, in some cases, carrying triple-digit effective interest rates.
“Rent now, pay later” services generally operate similarly: The company pays the landlord the full rent when due, and the renter repays the company in two or more installments over the course of the month.
