Buy Now Pay Later

They primarily earn money by charging merchants a fee (a percentage of the sale). They also generate significant revenue from late fees charged to consumers who miss their scheduled payments.

Student loans are often called "good debt" because they are an investment in your future earning potential. However, they are still debt that must be managed. Explore income-driven repayment plans if your federal loan payments are too high, and always prioritize high-interest debt (like credit cards) first.

The most common examples are mortgages (secured by the house) and auto loans (secured by the vehicle). Other examples can include secured credit cards (backed by a cash deposit), and some personal loans that use a savings account or certificate of deposit as collateral.

Wage garnishment is a legal process where a portion of an individual's earnings are withheld by an employer to pay off a debt, as ordered by a court or government agency.