Buy Now, Pay Later feels helpful in the moment. You get the item, split the cost, and tell yourself it will be easy to handle. But the real issue is not the payments. It is what these payments do to your cash flow.
The goal is not to shame the debt. The goal is to Master Your Cash Flow, use debt smarter, and free money that can start compounding for you. The CakeClub app exists to help you find that hidden cash flow.
Here is a real example from Al Zdenek's life:
At one point, he had three loans totaling $40,000, with payments of $1,800 per month. By restructuring the loans and switching to interest only, payments fell to $333 per month. That freed $1,467 every month.
If that were present day, and he could have saved at 8%, that could grow to:
• ~$108,509 in 5 years
• ~$270,171 in 10 years
• Close to $1,000,000 in 20 years
This is how powerful it is to reorganize debt and save the difference. Not a single extra hour of work is required. The money grows because cash flow was freed.
Let’s walk through how to approach Buy Now, Pay Later with this same mindset.
1. Start With Awareness and a Full List of Your Buy Now, Pay Later Obligations
You cannot fix what you cannot see. Most Buy Now, Pay Later stress comes from losing track of balances and due dates.
• List every Buy Now, Pay Later purchase, remaining balance, and upcoming due date.
• Use the CakeClub app to view all transactions together and spot where Buy Now, Pay Later use is creeping up.
• Mark which purchases were genuine needs and which were impulse buys.
• If an item was not a need and is still returnable, consider returning it to recover cash flow.
A 2025 TransUnion study found that nearly half of Buy Now, Pay Later users lost track of at least one outstanding installment².
Awareness is the first tool for freeing cash.
2. Create a Simple Priority Based Payment Plan
You want a plan that frees cash flow, not overwhelms you.
• Start by paying the smallest or soonest due installments first.
• Turn on notifications so nothing slips through the cracks.
• Use the CakeClub app to compare weekly cash flow so you can choose which installments you can safely accelerate.
The Federal Reserve’s 2025 household finances report found that small, steady payment decisions create better long-term outcomes than aggressive payoff attempts that are hard to sustain³.
Clarity beats intensity.
3. Limit Future Buy Now, Pay Later Use and Build a Cash Buffer Instead
Buy Now, Pay Later often appears when savings are low. The solution is not guilt. It is better cash flow habits.
• Reserve Buy Now, Pay Later for urgent needs only.
• Begin building a small emergency fund so unexpected costs do not end up on installments.
• Use the CakeClub app to find recurring expenses you can trim and redirect toward savings.
Bankrate's 2025 study found that people with even a small emergency fund were far less likely to take on high-risk short-term debt⁴.
Your cash buffer is a compounding engine waiting to begin.
4. Use Debt Smarter, Not Emotionally
This is where most people misunderstand debt. Debt is not something to fear. It is something to structure.
If you can consolidate, refinance, or negotiate lower payments, you create an immediate opportunity to save the difference and grow wealth.
Let's revisit Al’s example:
$1,467 of freed monthly cash flow, saved at 8%, compounds dramatically. A small structural change completely shifts your financial trajectory.
This is what Al calls building wealth by “shuffling paper.” You are not working more. You are reorganizing your obligations so cash flow can work for you.
5. Let the CakeClub App Strengthen Your Decision Making
The CakeClub app gives you the clarity to use debt, not fear it.
It helps you:
• See all spending and installments clearly in one place.
• Identify patterns that signal overspending or emotional spending.
• Compare your week-to-week cash flow so you can plan payments strategically.
• Build habits that reduce stress and support long-term financial independence.
You can use Buy Now, Pay Later when needed, but you can use it smarter. Clarity creates control. Control creates freedom.
Sources Cited
- Consumer Financial Protection Bureau. (2025). Buy Now, Pay Later Market Monitoring Report.
https://files.consumerfinance.gov/f/documents/cfpb_BNPL_Report_2025_01.pdf
- TransUnion. (2025). Buy Now, Pay Later and Consumer Credit Behavior Study.
https://www.transunion.com/lp/buy-now-pay-later-data-study
- Federal Reserve. (2025). Economic Well Being of U.S. Households Report.
https://www.federalreserve.gov/publications/2025-economic-well-being-of-us-households-in-2024-executive-summary.htm
- Bankrate. (2025). Emergency Savings and Debt Dynamics Study.
https://www.bankrate.com/banking/savings/emergency-savings-report/
