A flexible payment plan allows consumers to purchase a product and pay for it over time. It’s similar to a credit card but is on-the-spot financing. Companies such as Affirm and Paypal Credit allow merchants to offer financing at checkout. Customers are often approved but those with the best credit get the best terms. Sometimes this means no interest for a specific period of time. Consumers with poorer credit will often have to pay high-interest rates (up to 30%). Missing a payment can mean high fees and may even void an interest-free period. Flexible payment plans can often lead to debt. Consumers are using the plan because they don’t have the cash to purchase the product. The alternative is to finance it. However, with a high-interest rate and late fees, payments can become difficult to pay while debt increases.