What is buy now pay later?
Buy now pay later agreements are also known as store finance. They’re a way for you to purchase goods on credit and pay for them usually after a set interest free period, or in instalments.
you can use this payment method at some high street shops, it’s more commonly used by catalogues and online retailers.
Some agreements will let you pay after a set period, while others will let you pay for your purchases in instalments.
This type of finance has existed for years, but recently, some companies have popularised it with younger consumers through advertising campaigns. These adverts will often not highlight the risks of paying in this way.
Risks can include:
- damage to your credit rating if you are late or have missed a payment.
- charging high interest and fees if you can’t afford to pay what you owe on time.
- Adverts sometimes target people on social media who might be less able to afford the items and encourage them to buy now and pay later.
Buy now pay later is very easy to use and with low minimum spends it can be a tempting way to pay for your shopping.
This can have a negative impact on the amount of debt you have or your credit rating if you don’t keep up with repayments.
If you don’t have the money, please don’t be tempted by these offers. Only spend what you can afford.
If you are having issues managing your money, please contact our Tenancy Sustainment team here and we can help you.