Question: Derek in Batavia: You guys say you don’t like buy now pay later programs, but aren’t they better than credit cards since there’s no interest?

A: In theory, if you’re just comparing interest rates, buy now pay later (BNPL) services could be considered more financially sensible than credit cards. This is because, as you mention, BNPLs typically (but not always) charge 0% interest while the average credit card rate now hovers between 20 and 22% according to WalletHub.

However, you also need to look past the interest rate; because BNPLs also have some downsides. For instance, just like a credit card company can charge you late fees, BNPLs can also do so if you don’t pay on time. Additionally, unlike credit cards, BNPLs offer no chance to earn rewards. They also do not provide any kind of purchase protections. And even if you use a BNPL responsibly, this behavior will not be reflected on your credit report, meaning it won’t improve your credit score.

Now this is not to say credit cards are perfect. Far from it. Just ask the 46% of Americans who Bankrate says are carrying the burden of credit card debt from month to month. So let us be clear: No matter if you’re using BNPLs or making interest payments on a credit card, we would argue that you’re living beyond your means. Because in both cases, you’re paying for something in installments – which means you actually can’t afford whatever you’re buying.

The Allworth Advice is that we don’t like BNPLs because they encourage overspending (especially since no credit check is involved) and come with fewer perks and protections than credit cards. On the other hand, as regular readers of this column know, we only support using credit cards if you can pay them off on-time and in-full every single month.

Q: K.W. in Norwood: My best friend’s husband passed away and left her his Roth IRA. Does she have to pay taxes on any of that money?

A: First, it’s important to mention no taxes are owed simply for the act of inheriting the account.

Now, in some cases, beneficiaries of Roth IRAs have to take Required Minimum Distributions (RMDs) over a certain amount of time even though the original account holder never would have had to take them. However, because your friend is a spousal beneficiary (and we’re assuming the sole beneficiary), she does not have to take any RMDs – as long she makes the Roth IRA her own by retitling it or rolling it in to her own Roth IRA. The account will also continue to grow tax free.

On the other hand, if she decides to transfer it to what’s called a Beneficiary Roth IRA (also sometimes called an Inherited Roth IRA), then she would have to take RMDs… not exactly the preferred option. Of course, she could always take a lump-sum distribution which would be entirely tax free, provided the account has existed for at least five years. (Note: These options only apply to Roth IRAs – inherited traditional IRAs come with their own rules and special considerations.)

Here’s The Allworth Advice: This decision can depend on your friend’s age, her late husband’s age, and a variety of other factors. A fiduciary financial advisor can help her analyze the situation and choose the right course of action for her needs and circumstances.

Every week, Allworth Financial’s Amy Wagner and Steve Sprovach answer your questions. If you, a friend, or someone in your family has a money issue or problem, feel free to send those questions to yourmoney@enquirer.com.

Responses are for informational purposes only and individuals should consider whether any general recommendation in these responses is suitable for their particular circumstances based on investment objectives, financial situation and needs. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional adviser of his/her choosing, including a tax adviser and/or attorney. Retirement planning services offered through Allworth Financial, an SEC Registered Investment Advisor. Securities offered through AW Securities, a Registered Broker/Dealer, member FINRA/SIPC. Visit allworthfinancial.com or call 513-469-7500.

This article originally appeared on Cincinnati Enquirer: Is buy now pay later better than a credit card?