Buy Now, Pay Later: Is It Worth It?

[Yusra]

Buying now, paying later (or even at all) can seem like a great idea, but what if you're not able to make the payments? You may be tempted to forego your loan, but it is not the best course of action.

If you buy something today and then can't pay for it, you lose any benefit of having it in your possession and that's true even if you've already paid for the item! If you pay with a credit card, and then go into debt over the course of several months or years, your credit score will take a hit and it could even affect your ability to rent an apartment or get a loan in the future.

It's also true if you have an installment plan. If you sign up for an installment plan for a car or home purchase, but don't make all of the payments. even if they're made on time. you can find yourself without a car or house. Even worse: You may have to pay more than what was originally agreed upon because interest has accrued since then.

 

[Knowlopedia]

Buying and paying later is the newest trend in retail, but is it worth the wait?

The promise of buy now, pay later sounds too good to be true. Who cares about paying up-front for the latest and greatest when you can just delay payment? It's a payday saver for sure, but there are some major drawbacks to this game-changing idea. Let’s take a closer look at what buy now pay later really means and weigh out its pros and cons.

What You Need To Know: There are quite a few misconceptions about buy now, pay later programs. For example, you may think that you can use the program only with certain stores or that you must use your credit card. The truth is that buy now, pay later is available at almost any store. You can even use the program with a debit card, although some stores do have restrictions on this option.

Another common misconception is that buy now pay later programs only apply to items under $100. This isn't true, however. In fact, many of these programs are available for more than $100 items as well. If you want to save money in larger amounts of money, check out interest-free payment plans so you don't have to pay interest on your purchases as well.

 

[Etini Willie]

Buy now and pay later helps a lot of people to get what they naturally could not afford. It also helps them to enjoy the things they need right away without having to wait and wait all in the name of savings. It only gets worse when the later payment has to come with an interest. Most institutions that offer buy now, pay later always have a profit in the name of interest. It is not always as good as it seems to be.

I have never been involved in a buy now, pay later program. I hope the people that are involved strive to pay back and they don't take advantage of such a system to perpetuate fraud and dishonest behaviors.