'Buy Now, Pay Later' Services Can Actually Lead To More Debt

Companies that allow consumers to complete a purchase after the point of sale are often unregulated and can lead users into deeper debt.

There's a long history of paying for things in installments: There's the way old commercials advertise, there are rent-to-own products, or shoppers can put purchases on a payment layaway plan.

But recently, more options have popped up that give consumers the items right away and takes away the threat of repossession.

Companies like Afterpay, Klarna and Affirm have become a more frequent resource for people looking to buy things using a stretched-out payment plan. They have increasingly been showing up as payment options on websites of major retailers, including Target, Bed Bath & Beyond and Amazon.