If you haven’t heard of Buy now, pay later you might be living under a rock! Over the past few years providers offering this form of credit have flooded the market and everyone has gotten on board the BNPL train! Afterpay, Humm, Zip, Laybuy, Genoapay (Latitude), Openpay and Klarna are just a few!
BNPL put simply means you can take a product home today and make payments for it over a period of time – usually 4 weeks. The payment comes out of your account and is interest free if you make all your payments on time.
BNPL businesses are targeting rakatahi as an easy way to purchase items you want without the ‘credit card debt’. But hey here is the thing – anything where you don’t have the cash to buy the item is a debt, whether or not it is credit card debt or BNPL.
🔥 Late fees can add up if you don’t have money ready to process
🔥 You might be likely to buy more than you can afford due to the temptation
🔥 Be honest with yourself about your budget and future plans – is shopping eating into your pūtea?
🔥 Your credit rating can suffer too by missing repayments and not paying off any penalties
Future you says hold up:
👆 Using BNPL to pay for everyday items is a no win for future you. If you’re using it to pay for your diet coke stash or for those new shoes you’ve been eyeing up, you are not only going nowhere fast, but you’re pushing all your goals and plans into next year, or beyond!
👆 Save some pūtea aside from each and every pay you receive and this is a much better way to pay for those nice to have extras!
👆 If you do need to use a service like this keep it limited and try and not use it too often – future you thanks you!!
READ HERE!
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