The Hidden Trap in āBuy Now, Pay Laterā Plans
If you donāt pay the full interest amount, interest is applied to the entire purchase priceānot just the outstanding balance after your payment. Those promotional payment plans (like ādonāt pay for six monthsā or āzero percent interest for one yearā) work this way: if you havenāt paid off the full amount by the end of the promotional period, interest is retroactively applied to the entire original price from the day you made the purchase not just for the balance you owe.
