Buy now, pay later loans are often framed as a way to make life easier—spreading out payments, easing cash flow, and helping consumers afford what they want today. But according to Registered Financial Planner Rosemarie Gases, convenience should not be confused with progress.
“BNPL doesn’t make people wealthier,” Gases says. “It makes spending easier. And those two things are very different.”
She warns that while BNPL may solve short-term cash pressure, it often undermines long-term financial growth—especially for younger consumers just beginning to manage their money.
Borrowing to Maintain a Lifestyle
Gases says many Filipinos use BNPL not to invest in their future, but to preserve a lifestyle their income can no longer support.
“Inflation has reduced purchasing power, but instead of adjusting spending, people borrow to keep up,” she explains. “BNPL becomes a way to delay reality rather than adapt to it.”
The problem, she says, is that borrowed money does not increase income.
“You are using tomorrow’s earnings to pay for today’s wants. That leaves less room to save, invest, or prepare for emergencies.”
Why BNPL Disrupts Financial Discipline
One of Gases’ biggest concerns is how BNPL affects money habits.
“Financial discipline is built by learning to wait,” she says. “When everything can be bought instantly and paid later, that discipline never develops.”
Over time, she explains, this weakens essential financial skills.
“People stop budgeting properly because payments are spread out. They stop tracking expenses because the impact feels small. But those small amounts add up.”
This is especially risky for first-time earners.
“Many millennials and Gen Z users are encountering credit before they learn how to manage cash. That reverses the natural learning process.”
The Opportunity Cost of Easy Credit
Beyond interest and fees, Gases says BNPL carries a hidden cost: lost opportunity.
“Every peso used to pay installments is a peso that cannot go to savings, insurance, or investing,” she explains. “That opportunity cost is rarely considered.”
She adds that long-term goals are often the first to be sacrificed.
“Retirement feels far away, so it gets postponed. But postponement has consequences that compound over time.”
Why Cutting Back Feels Hard—but Necessary
Gases acknowledges that reducing consumption is emotionally difficult.
“People don’t like to hear that they need to cut back,” she says. “But financial progress often requires discomfort in the short term.”
BNPL, she explains, removes that discomfort.
“It allows people to avoid tough choices. But avoiding tough choices doesn’t make them disappear—it makes them more expensive later.”
Relearning the Basics of Financial Growth
Gases believes the solution is not banning BNPL, but reframing how it is viewed.
“People need to stop seeing BNPL as a lifestyle tool,” she says. “It should be treated like any other form of debt—with caution and intention.”
She encourages Filipinos to refocus on fundamentals.
“Progress comes from living within your means, building an emergency fund, protecting yourself with insurance, and investing consistently. None of those are exciting—but they work.”
A Question Worth Asking
Before using BNPL, Gases suggests asking a simple but powerful question.
“Is this purchase helping me move forward—or is it just helping me feel better right now?”
That distinction, she says, separates convenience from progress.
“When people learn to delay gratification, they create room for real financial growth. Without that, easy credit keeps them busy—but stuck.”
The Long View
Ultimately, Gases believes financial progress requires patience.
“Wealth is built slowly,” she says. “Anything that promises ease, speed, or instant satisfaction should be examined carefully.”
BNPL, she concludes, is not the enemy—but it is not the solution either.
“If your financial life depends on borrowing to stay comfortable, that’s not progress. That’s a warning sign.”
