"According to the Bureau of Labor Statistics, rents have jumped nearly 28% in past five years. 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, layering fees onto already strained budgets and, in some cases, carrying triple-digit effective interest rates - raising questions about whether they ease financial pressure or deepen it."
"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."
Rent levels have risen rapidly, with Bureau of Labor Statistics data showing rents jumped nearly 28% in the past five years. Rent-now-pay-later services from companies such as Flex, Livble and Affirm let renters split monthly rent into multiple payments, charging subscription fees, percentage fees, or other charges. Consumer advocates warn the products often function like short-term loans with fees and, in some instances, triple-digit effective interest rates that can increase overall housing costs. Many renters are cost-burdened: roughly 109 million Americans (about 42.5 million households) rent, and a large share pay 30% or more of monthly income on rent.
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