Buy now pay later can be super convenient, but juggling repayments with your other financial commitments can be a headache. And hidden late fees can be an unwelcome dip into your hard-earned savings.
And despite them not being ‘proper loans’, they can have an impact on lending applications you might make in the future – decreasing your disposable income and late repayments sometimes appearing on credit reports.
Layby, or good ol’ fashioned ‘saving up for it’ can be great alternatives. Depending on the purchase and your circumstances, a personal loan might be a better solution.
If you’ve already got some buy now pay later payments you need to whittle down, here’s a few tips:
- Stick to a limit and try to use only one service
- Make sure your buy now pay later repayments are in your budget
- Link your buy now pay later account to your debit card, rather than credit card. That way you’re using your own funds and not funding a champers lifestyle with a beer budget!
Remember, if you’re struggling to make your repayments, get in touch with the provider – or even your bank – to see if they can assist.