It’s exactly as it sounds, ‘buy now, pay later’ services allow customers to purchase items immediately but delay the payments in blocks to stretch the cost out. At a first glance these might seem like a good idea, but it’s important to know about all the associated fees and what to do to avoid any financial trouble.
There are lots of pay-later providers out there at the moment, some include,
- Humm (previously known as Certegy Ezi-Pay and Oxipay)
- Make It Mine
Now these payment services aren’t your traditional ‘loans’, but if you can’t make the repayments on time the costs can start to pile up in other ways. Each provider is different, so be sure to read their individual Terms and Conditions.
Here’s some of the most common ways they can charge their customers,
- Late fees – these are usually charged if you can’t meet one of your periodical payments.
- Monthly account-keeping fees – small fixed charges for every month, so you can continue to use their service.
- Payment processing fees – you may be required to pay a small fee for each payment, on top of your set repayments.
It’s important to not only know the service provider well, but to also understand your own spending behaviour to make the best choice. If you follow the three steps below, you’ll be able to safeguard yourself against any pay-later mishaps,
- Plan ahead – making sure that these payments (including the future ones) will fit into your budget is a good start, alongside any other bills or financial commitments that may come up at the time.
- Don’t get into debt – consider linking your debit card to your Buy Now, Pay Later service instead of a credit card. This way you’ll only spend the money you know you have.
- Don’t overcommit – we know it’s enticing, but put a limit on your spending and the amount of services you sign up for.
Make sure that you do your research before signing up to these services. If you’re ever unsure on if it’s the right thing for you, reach out to us on 1300 004 863 or by visiting us in branch, our staff can help talk through some alternative options we might have to help you reach your goals.