Is it Worth Using Shop Credit to Buy Now Pay Later?
There are quite a few shops which will offer the option to buy items right away and then pay for them at a later date. This can seem good, but there are disadvantages. It can be worth examining the pros and cons before you use this sort of deal to make sure that it really will benefit you.
- If you want things that you cannot afford right now, then using this sort of deal means that you will be able to get it right away. You will not need to wait and save up or borrow money elsewhere to be able to buy it. This can mean that you will be able to get items that you really need or really want without delay.
- You will be able to spread the cost of the item normally, so you will not have to find the money to pay for it all on one go. You will often be able to repay in instalments which hopefully, you will be able to afford.
- Sometimes there is no additional cost to the item if you get the buy now, pay later deal. You will find that whether you buy it form that shop and pay immediately or later the cost will be the same.
- There is often an additional cost when you have credit like this. You may have to pay an interest charge on it. If there is no interest charge, then the ticket price could be dearer compared with the same item or similar items that are sold in other shops. Make sure that you check this out and ensure that you are not paying more than necessary.
- Spreading the cost can be very handy, especially if you are buying essentials but you have to be aware that if you miss a repayment then there will be a charge. So, you will need to be completely sure that you will be able to cover all of the repayments. It is wise to study your bank statements to be completely sure on this as these costs can be quite significant.
- You could be tempted to buy something that you do not really need or that is more expensive than you would normally buy because it looks like such a good deal. Make sure that you are not being tempted to buy items that you may regret later.
As you can see, there is a lot to think about. You will need to make the decision based on your personal situation and thoughts though. If you do need something in an emergency then this could be a good way of buying it, but it is worth checking whether you can find it cheaper elsewhere and buy it with a loan. If this is possible then you will be able to compare the costs of doing each and see which looks like it would be the best for you to try out. Try to make sure that it is something that you will be able to afford though. To do this, find out how much the repayments will be and then study your bank account carefully to make sure that you are confident that you will be able to pay them. If you think you might struggle, then carefully look to see if there are ways that you could reduce how much you spend elsewhere so that you will have enough money. It is wise to also have a backup plan to cover you if you are in the situation where you are suddenly short of money and struggle to repay.