10 buy now, pay later mistakes to avoid
With the digitization of payments, buyers no longer have to pay immediately from their bank accounts. Several online payment options allow one to buy and pay for a product flexibly. The “buy now, pay later” option is one such feature. Here, consumers can pay for a purchase later without any interest charged. Loan approval for BNPL is also quicker. But there are some mistakes one should avoid while availing of this option:
1. Buying expensive products
With “buy now, pay later,” it is easy to get carried away and buy expensive products that one cannot normally afford. For example, high-end laptops or electronic items may cost over $1,000. One can easily buy these products with the buy now, pay later option, but when it is time for payment, one might face a major financial crunch. Also, there are additional charges for late payments, which can eventually increase one’s spending. So, a better idea is to plan expenditures well in advance and save money before buying something costly.
2. Taking too many loans within a short time
Many people use “buy now, pay later” to buy multiple products. But as the number of transactions increases, one’s debts also increase, which can be overburdening when they have to be repaid. Also, it is difficult to track the last payment date for each transaction. For this reason, one should use this payment option only for a certain number of transactions every month.
3. Failing to pay on time
It is easy to forget to make “buy now, pay later” payments on time because it is not always monthly; it may also be on a weekly or biweekly basis. With late payments, one would have to pay additional fees as a penalty, which can increase the amount spent. Multiple late payments can cause a huge financial crunch in the long run.