Renters Turn to 'Rent Now, Pay Later' Services Amid Rising Housing Costs, Sparking Fee Concerns
A growing number of renters in the United States are utilizing 'rent now, pay later' services to manage their monthly payments as housing costs continue to rise. These services, offered by companies like Flex, Livble, and Affirm, allow renters to split their rent into multiple payments throughout the month. This option is particularly appealing to lower-income and gig-economy workers whose paychecks may be unpredictable. However, consumer advocates warn that these services often function like short-term loans, adding fees to already tight budgets. For instance, Kellen Johnson, a user of Flex, pays a monthly subscription fee and a percentage of his rent as a service charge, which can result in high effective interest rates. The Bureau of Labor Statistics reports that rents have increased by nearly 28% over the past five years, contributing to the financial strain on renters. 
