Buying gifts? Why ‘buy now, pay later’ could be a dangerous option for many holiday shoppers

Gift-giving can be a joyful part of the holiday – unless it leads to a raft of late fees. DNY59/E+ via Getty Images

Gift-givers hoping to splurge this holiday season despite the pinch of high inflation have an easy option: buy now, pay later.

An ever-growing number of financial companies and apps are offering consumers what are essentially small, short-term loans that combine instant gratification with interest- and fee-free payments spread out in the new year.