In the recent past, buy now and pay later schemes have increasingly become popular. But are they a better idea? Well, with shoppers signing up in droves, it means the after pay effect is real. With many shoppers jumping on board, there is no denying that people are just obsessed with this trend. With some customers making an average of 8 transactions a year, it’s evident they can’t just get enough of this payment method.
Currently, there are even Facebook pages dedicated to this purchasing method with many people confessing that they are already addicted. But is this paying method affecting our pockets? Here are some of the guidelines to show whether the scheme is a bad or a good idea.
These schemes generally allow consumers to pay off their goods after a certain period of time. The good thing is that you can still have the items delivered to your house or just walk out with them. However, it’s very important to be very patient with these schemes. For instance, as a customer, you will be charged four equal installments spread over a month. If you decide to buy shoes worth 200 dollars you’ll have to pay 50 dollars every week. However, in case you are cash trapped this might not be the best buying option.
If you are buying the latest jacket or pair of shoes just because you need them, it means it might not be the best option for you. If you just click the buy button and throw something into your basket then this scheme might be a trap. The first thing to do is to ask yourself whether you really need what you want to buy. If your answer is no then you better leave it. If you are looking for Quality products you can buy now and pay later, it’s important to think twice.
You also need to know that missing your payday may make your name end up on your credit file. Depending on which scheme you’ve signed up for, you need to ask them whether your credit file will be affected. Interestingly, some banks are even happy when they hear about after pay services. So if you fail to follow the rules this scheme can really affect you.
There are also some nasty charges and fees that usually come with these services especially if you fail to pay on time. You just need to know that there is nothing free in this world. While most after pay schemes do not charge their customers, if scheduled payments are not made on time you’ll definitely be charged. As a customer, it’s therefore very important to ensure that your payment is on schedule.
If you use them well, then these schemes are not bad. You can get Quality products you can buy now and pay later. Just like credit cards that many people believe are bad, if you use them diligently and wisely, they can work. But before you dive head-on into some of these schemes, you need to think about whether you need the goods or not. There might be a good chance you want to spend the cash that you don’t have.
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