Millennial Money: Installment plans for rent divide up payments, but drive up costs
A record number of Americans who rent are now considered cost-burdened, with 30% or more of their income going toward rent and utilities
In January, I received an email from my apartment complex saying that I could now divide my monthly rent into two payments via a product called Flex.
I would make the first payment on the first of the month, but I could choose when to make the second payment. According to the email, this would help me pay rent on time, improve my cash flow and even build my credit history. Enticing, right?
It sounded familiar. “ Buy now, pay later ” plans, popular in the retail industry, operate similarly. With buy now, pay later, you pay for a purchase over a series of installments, usually with no interest, which can help manage the expense.
But needing to divide up a payment to afford something — especially on a line item as crucial as housing — could spell financial trouble for some renters.
