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Small payment plans can add up to a big bill

Suppose you split three purchases into payments due later. Before your next payday, each plan needs $25. That is $75 due from the same money.

If you have only $50 left after essential bills, you are short even though each purchase looked manageable.

Splitting a purchase spreads out its payments. It does not stop them landing beside other bills. Some plans also charge fees for missed payments.

Source: consumerfinance.gov

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