We live in a society that is constantly bombarding us with advertising – telling us what products we need, what clothes we need and what type of house we should live in. It is simply the way the capitalist system works, and how our economy is grown. However, purchasing these products can put a stress on your wallet. Even if you are only buying the essentials, what if your refrigerator breaks down tomorrow – if you do not have enough in your savings to replace it quickly, it would cause problems for you and your family. Although it is not always suitable, the buy now pay later option can sometimes be a real savior.
This option is basically the same as taking out credit. This means that, before you consider it, you should make sure that in 6 or 9 months time (or whenever you have to begin the repayments) you will be able to afford to start paying the money back. If, at this stage you cannot, you will have much more stress in your life; clearly, this is not a good thing.
The second thing to consider is what state your credit file is in. Did you know that if you are refused for credit, it may actually count against you on your credit file? This is because anybody you apply for credit with in the near future may wonder why you were refused credit from another company. So it’s a good idea to take a look at your credit report (contact a credit reference agency) to check whether you’re likely to be accepted to the buy now pay later scheme before attempting to use it.
If you feel able to afford the repayments etc., you should shop around. These days there are many buy now pay later offers with many retailers, and they all offer something different. One may be pay nothing for 12 months, but it has a 29% interest rate after this; another may be pay nothing for 6 months, but only has a 10% interest rate after this. Although you will begin to pay back the second option sooner, you will save a lot of money in the long run.
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