You Can Split Your Rent With 'Buy Now, Pay Later' Plans—But It Will Cost You

Core Insights - The rise of rent now, pay later services indicates the increasing unmanageability of housing costs for many Americans [4][9] - Affirm has launched a pilot program allowing renters to split their payments into two installments, partnering with Esusu for credit score reporting [2][5] - Monthly service fees and potential finance charges can make these services more expensive than traditional payment methods [6][9] Company-Specific Insights - Affirm's new service does not charge interest but involves monthly fees, accessible only through Esusu's Plus and Premium services [3][5] - Other companies like Zip and Livble offer similar services, with Zip advertising an annual interest rate of 31.11% and Livble charging monthly finance charges of $30 to $40 [6][7] - Flex provides a rent-splitting option that may require landlord participation, with a monthly fee of $14.99 and additional charges [7] Industry Trends - The growth of rent now, pay later services reflects broader economic challenges, as turning rent into installment debt can increase household debt and reduce overall consumer spending [4] - Many of these services are reported to be more costly than using credit cards for rent payments, highlighting the financial strain on renters [6][9]