How to battle your buy now, pay later spending

Tuesday, 8 January 2019

The rising popularity of Buy Now, Pay Later services means more consumers are buying more than they can afford, especially over the holiday season. These services can lead people into financial stress and while the holidays may be long behind us, the spending hangover is just kicking in.

1.   1. Create a budget and reminders

• Late fees can add up depending on how many payments you miss, and how many purchases you are paying off. Start the year off by setting up a budget and include all your Buy Now, Pay Later payments to avoid paying late fees.
• Put reminders in your phone, diary, or calendar so you don’t miss a payment. Remember, you could incur a late fee from the service and your bank may charge a fee if your account is overdrawn.

22. 2. Check for hidden costs 

• Does the service charge any account fees? These could be added to your account at the beginning or end of the month. Find out if these apply to you so you can budget accordingly.

22. 3. Pay when you can 

• If you are able to, see if you can pay off outstanding payments before the due date to avoid late fees.
• Is there an option to change the payment amount and schedule? This could help to keep you in control of your payments.

22. 4. Does the service have a hardship policy? 

• If you feel you have overcommitted, or your circumstances have changed and you can’t make a payment, check the service’s website for a hardship policy to see if the service could help you.

5.   5. Take a break from using the service

• To give yourself time to catch up on what you spent over Christmas, refrain from making future purchases through a By Now, Pay Later service.
• If you need to take the temptation away, you may be able to suspend your account from making future purchases until you’re ready to use it again.

Are you experiencing financial hardship? Call us to talk through your options.