Renters use 'rent now, pay later' services to manage monthly payments, but fees raise concerns

Core Insights - The rise of "rent now, pay later" services is a response to increasing housing costs and unpredictable paychecks, particularly affecting lower-income and gig-economy workers [1][2] - Rents in the U.S. have increased nearly 28% over the past five years, leading to a growing number of renters seeking financial relief through these services [1][5] Group 1: Industry Overview - Companies like Flex, Livble, and Affirm offer services that allow renters to split their rent payments into multiple installments, which can help manage cash flow [2][6] - Approximately 109 million Americans, or about 42.5 million households, are renters, with many paying 30% or more of their income on rent, categorizing them as "cost burdened" [5] Group 2: Financial Implications - Rent now, pay later services typically function like short-term loans, often incurring additional fees that can strain budgets further [2][7] - For example, a user of Flex paid a total of $33.49 for a two-week loan of $500, resulting in an effective annual percentage rate of 172% [3][7]