{"id":1404219,"date":"2026-02-06T04:42:08","date_gmt":"2026-02-06T09:42:08","guid":{"rendered":"https:\/\/www.thenewsherald.com\/?p=1404219&preview=true&preview_id=1404219"},"modified":"2026-02-06T04:42:31","modified_gmt":"2026-02-06T09:42:31","slug":"renters-use-rent-now-pay-later-services-to-manage-monthly-payments-but-fees-raise-concerns","status":"publish","type":"post","link":"https:\/\/www.thenewsherald.com\/2026\/02\/06\/renters-use-rent-now-pay-later-services-to-manage-monthly-payments-but-fees-raise-concerns\/","title":{"rendered":"Renters use \u2018rent now, pay later\u2019 services to manage monthly payments, but fees raise concerns"},"content":{"rendered":"

By KEN SWEET and CORA LEWIS The Associated Press<\/p>\n

NEW YORK (AP) \u2014 Rent can eat up an entire paycheck at the start of the month, so a growing number of renters are turning to a financial product that promises relief by letting them split the bill \u2014 for a price.<\/p>\n

So-called \u201crent now, pay later\u201d services have emerged over the past few years as housing costs climb<\/a> and paychecks grow less predictable, particularly for lower-income and gig-economy workers. According to the Bureau of Labor Statistics, rents have jumped nearly 28% in past five years.<\/p>\n

Companies such as Flex, Livble and, more recently, Affirm, say breaking rent into multiple payments can help renters manage cash flow. But consumer advocates warn the products typically function like short-term loans<\/a>, layering fees onto already strained budgets and, in some cases, carrying triple-digit effective interest rates \u2014 raising questions about whether they ease financial pressure or deepen it.<\/p>\n

Kellen Johnson, 44, started using Flex to split up his rent payments about two years ago. Instead of paying the whole $1,850 of his rent on the first of the month, Johnson would pay $1,350 on that date, and $500 on the 15th. For the service, Flex collected a $14.99 monthly subscription fee, as well as 1% of the total rent, which for Johnson was $18.50, bringing his monthly charges for the app to more than $33.<\/p>\n

Johnson said he was willing to pay the extra costs in part because he worked as an independently contracted delivery person<\/a> for Amazon at the time, and his paychecks could vary.<\/p>\n