Some concertgoers use buy now, pay later loans for tickets. Start a 'Beyoncé fund' instead, analyst says

Schaben | Los Angeles Times | Getty ImagesMany Americans have become accustomed to up big purchases with buy now, pay later loans — including tickets for concerts and other events.Going to a concert is not cheap: Tours of big-name artists including Taylor Swift, Beyoncé and Coldplay have in part spurred a rise in ticket prices for events in recent years, a trend economists call "funflation."Admission fees to movies, theaters and concerts were up 3.9% in the 12 months through June, according to the Bureau of Labor Statistics figures

And while the Federal Trade Commission changed a rule in May to make ticket pricing more transparent, experts say the move won't make costs go down.More from Personal Finance:Senate introduces bill for tariff rebate checksFed holds interest rates steady: What that means for your moneyTrump's tariffs could soon bring higher food prices, analysis findsAlmost a quarter, 23%, of respondents in a new survey by LendingTree said they have used buy now, pay later loans for concert or festival costs.Rates are higher among younger generations, with 37% of Generation Z and 35% of millennials saying they've 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.To compare, 19% of Gen Xers, which the site defines as adults ages 45 to 60 — said they've used buy now, pay later loans for concerts, ed by 3% of baby boomers, those ages 61 to 79.Carve out money in your budget as your 'Beyoncé fund' or your 'Taylor Swift fund.'Matt Schulzchief credit analyst at LendingTreeLendingTree 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.It's 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.Young Americans are most familiar with the form of payment, and their use of it for concerts and festivals speaks to the "time of life" they're in, he said."Part of the reason why I up in credit card debt in my 20s was because I was going to concerts and seeing my favorite bands," Schulz said.watch now11:0711:07'Phantom debt' is flying under the radar — and it could be a blem for the U.S. economyBottom Line If concerts and other events are important to you, he said, work the expenses into your budget and create a savings fund specifically with them in mind."Carve out money in your budget as your 'Beyoncé fund' or your 'Taylor Swift fund,'" Schulz said.If you do need to stretch out the cost of attending a concert, here's what to know buy now, pay later loans versus credit cards.Not all buy now, pay later plans are the sameBeyoncé performs onstage during the Renaissance World Tour at SoFi Stadium in Inglewood, California, Sept. 1, 2023.Kevin Mazur | Wireimage | Getty ImagesBuy now, pay later plans have certain advantages, but they might not offer the same tections as credit cards, especially if things go wrong with the concert or event, experts say.The loans became a option 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.However, the form of payment has evolved to the point where not all buy now, pay later plans are "cut from the same mold," he said.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 to NerdWallet

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.Credit cards can be pricier than buy now, pay later, experts say, but they have other advantages. some buy now, pay later plans, credit cards charge late fees and interest on unpaid balances

While some cards offer new cardholders brief interest-free offers on purchases, the average credit card interest rate is just over 20%, according to Bankrate.But most cards typically offer purchase tections that you might not get from a buy now, pay later plan, said McBride."Paying with a credit card can make it easier to get your money back if the concert gets canceled," he said.Some cards offer rewards such as cash back, points or miles on purchases. 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's report.