June 28

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Is Buy Now Pay Later For Me?


I’m not going to bore you with the stats, there have been surveys done where some people just love it and some people well have made numerous complaints.

Today we are going to talk about if this is for you and how can you make it work in your favour, if you decide it is for you.

My own personal experience with buy now pay later is a good one, I originally applied for buy now pay later using my phone it was an easy enough application process.   There it was my limit of $500, I did not have to disclose any of my personal details, debt levels or the like, however they will run a credit check in the background on the app.

Simply enough I tried it out, paid it back on all the due dates, first payment due the day of purchase and then three equal payments thereafter.   After a few purchases becoming fully paid, it appeared I had done something right, before I knew it my limit for buy now pay later was increased to $2000, no questions asked.

That little story about me, was so you would get the gist of how it works.

So a big tick for the service of buy now pay later, there are others as well on the market that all have differing terms, Humm lets you have lesser repayments, Zip also gives you a longer term to repay, you will have to check out the terms and conditions for yourself to see if any of these suit you. 

So now we have talked about the pros of the buy now pay later schemes, what about the downside of them.  

The buy now pay later service is great when you don’t have enough available ready cash to purchase something (not that we use cash that much anymore, mostly we use cards) now that is if: 

  1. You don’t overindulge and only buy one thing at a time, otherwise you will get out of control managing to keep up with the various payments on all of the different dates
  2. Give yourself a shopping limit, because it usually does have to be paid back in full in 6 weeks time
  3. Make sure the payments are accounted for before their due date, because they automatically charge to your account

I go to the app, check out what is due in the coming week, if its before I have more money coming in,  then I  have to make that payment now manually.   That way I avoid overdrawing the bank account and having payments reject because the money was not available to make the payment.  

All in all, these types of services are convenient and useful for short term needs, often better than the credit card, because you are forced to pay them out in full in 6 weeks on the most popular buy now pay later sites, it takes me back to the days of lay-by, except we didn’t get to take the goods home, until the lay-by was paid off, but lay-by was something that always worked for me as a young mum.



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