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Fans enjoy Taylor Swift\u2019s performance during The Eras Tour at SoFi Stadium in Inglewood, California, Aug. 7, 2023.<\/p>\n
Allen J. Schaben | Los Angeles Times | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Many Americans have become accustomed to breaking up big purchases with buy now, pay later loans<\/a> \u2014 including tickets for concerts and other live events<\/a>.<\/p>\n Going to a live concert is not cheap: Tours of big-name artists<\/a> including Taylor Swift, Beyonc\u00e9 and Coldplay have in part spurred a rise in ticket prices for live events in recent years, a trend economists call \u201cfunflation<\/a>.\u201d<\/p>\n Admission fees to movies, theaters and concerts were up 3.9% in the 12 months through June, according to the latest Bureau of Labor Statistics figures<\/a>. And while the Federal Trade Commission changed a rule in May to make ticket pricing<\/a> more transparent, experts say the move won\u2019t make costs go down.<\/p>\n More from Personal Finance:<\/strong> Almost a quarter, 23%, of respondents in a new survey by LendingTree<\/a> said they have used buy now, pay later loans for concert or festival costs.<\/p>\n Rates are higher among younger generations, with 37% of Generation Z and 35% of millennials saying they\u2019ve used the loans for these purposes. The site defined Gen Z as adults ages 18 to 28, and millennials as those ages 29 to 44.<\/p>\n To compare, 19% of Gen Xers, which the site defines as adults ages 45 to 60 \u2014 said they\u2019ve used buy now, pay later loans for concerts, followed by 3% of baby boomers, those ages 61 to 79.<\/p>\n<\/div>\n Carve out money in your budget as your \u2018Beyonc\u00e9 fund\u2019 or your \u2018Taylor Swift fund.\u2019<\/p>\n Matt Schulz<\/p>\n chief credit analyst at LendingTree<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n LendingTree said it surveyed 2,050 adults in the U.S. in mid-June. Of those, 1,047 said they plan to attend a concert or festival in the summer or fall.<\/p>\n It\u2019s not unusual to see Gen Zers and millennials leading the use of buy now, pay later loans, said Matt Schulz, chief credit analyst at LendingTree.<\/p>\n Young Americans are most familiar<\/a> with the form of payment<\/a>, and their use of it for concerts and festivals<\/a> speaks to the \u201ctime of life\u201d they\u2019re in, he said.<\/p>\n \u201cPart of the reason why I ended up in credit card debt in my 20s was because I was going to concerts and seeing my favorite bands,\u201d Schulz said.<\/p>\n<\/div>\n If concerts and other live events are important to you, he said, work the expenses into your budget and create a savings fund specifically with them in mind.<\/p>\n \u201cCarve out money in your budget as your \u2018Beyonc\u00e9 fund<\/a>\u2018 or your \u2018Taylor Swift fund<\/a>,'\u201d Schulz said.<\/p>\n If you do need to stretch out the cost of attending a concert, here\u2019s what to know about buy now, pay later loans versus credit cards.<\/p>\n<\/div>\n Beyonc\u00e9 performs onstage during the Renaissance World Tour at SoFi Stadium in Inglewood, California, Sept. 1, 2023.<\/p>\n Kevin Mazur | Wireimage | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n Buy now, pay later plans have certain advantages, but they might not offer the same protections as credit cards, especially if things go wrong with the concert or live event, experts say.<\/p>\n The loans became a popular option<\/a> because they allow consumers to spread the total cost over installment payments in a short time frame, often without interest, said Greg McBride, chief financial analyst at Bankrate.<\/p>\n However, the form of payment has evolved to the point where not all buy now, pay later plans are \u201ccut from the same mold,\u201d he said.<\/p>\n Most plans consist of four installment payments, but others have longer repayment terms. Those may charge an annual percentage rate, or interest, of up to 36%, according <\/a>to NerdWallet.\u00a0<\/p>\n Some plans also charge fees for late or rescheduled payments, which can cost up to $15 or even 25% of the purchase value, according to NerdWallet.<\/p>\n<\/div>\n Credit cards can be pricier than buy now, pay later, experts say, but they have other advantages.<\/p>\n Like some buy now, pay later plans, credit cards charge late fees and interest on unpaid balances<\/a>. While some cards offer new cardholders brief interest-free offers on purchases, the average credit card interest rate is just over 20%<\/a>, according to Bankrate.<\/p>\n But most cards typically offer purchase protections that you might not get from a buy now, pay later plan, said McBride.<\/p>\n \u201cPaying with a credit card can make it easier to get your money back if the concert gets canceled,\u201d he said.<\/p>\n Some cards offer rewards such as cash back, points or miles on purchases. About 65% of those who plan to attend a concert or festival this year said they will use credit card rewards to help pay for their costs, according to LendingTree\u2019s report.\u00a0<\/p>\n<\/div>\n<\/div>\n\n
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Not all buy now, pay later plans are the same<\/h2>\n
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