The holiday season isn’t cheap, and the twinkling lights can take your mind off those holiday bills that are coming due. Many Arizonans are watching their wallets this season. According to the data company Adobe Analyticsmore and more consumers are choosing to use Buy Now, Pay Later programs.

Here’s how the programs generally work:

• A consumer makes a purchase and agrees to pay the entire bill in installments over a certain period of time.
• The first payment is made at checkout and the others take place later.
• Purchases are often pointless

The programs can help consumers by reducing large upfront payments. But there is a financial risk because it is essentially a loan.
Beware of hidden fees: Many programs are interest-free, but if you miss a payment, this may change and you may be charged a high percentage. A missed payment could also hurt your credit score.

Protect your personal data: A report from the Consumer Financial Protection Bureau notes that many Buy Now, Pay Later terms and conditions include agreements about sharing personal information with third parties.

Beware of overspending: Because consumers don’t have to pay large amounts up front, consumers who use Buy Now, Pay Later programs often check out with more items in their cart.

Now some good news.

Earlier this year, the Consumer Financial Protection Bureau issued a new rule stating that Buy Now, Pay Later companies must offer consumers the same legal rights and protections as credit card lenders. This means that if there is a problem with the product, consumers have the right to demand a refund and dispute transactions.

The best way to protect yourself is to do your research before signing. Also be honest about your financial situation before your installment bills are due.

The US Public Interest Research Group has other tips to help you avoid financial pitfalls. on their website.