Buy now, pay later can turn into a costly trap when payments stack up

A broken air conditioner can be an urgent, expensive problem. For Lera Pauling, the repair cost more than $2,300, so she used a buy now, pay later loan rather than paying the full amount upfront.The offer: no interest for one year. But when Pauling saw interest listed on her account, she worried she was already being charged.“I reached out because I was just so frustrated,” she said.Pauling turned to the News 6 Neighborhood Network. After reviewing her loan documents, News 6 found the interest-free offer applied only if she paid off the balance within 12 months. The interest shown on her account was a reminder of what could be charged if she missed that deadline: the interest accumulated during the promotional period.Fortunately, Pauling paid off the loan in time. But her experience points to a broader risk with buy now, pay later loans: consumers can take on several commitments before realizing how much they owe each month.Buy now, pay later loans are short-term loans that often split