Buy Now, Pay Later - A Convenience Or A Burden?
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You walk past an Apple store and see an IPad that you are longing for. But you know that you can barely afford it.
Why worry when you can checkout for only ⅓ of the price? That’s how convenient Buy Now, Pay Later is - with just with a click of a button, you can choose to own a product with just three instalments.
This payment method is rising in popularity which gives buyers a peace of mind when purchasing big ticket items. A 2021 study showed that 38 per cent of Singaporeans, an estimated 1.1 million, have used a BNPL service, with those from 25 to 44 years being the most likely ones to have done so (43 to 44 per cent).
Manage Payments Without Having To Affect Finances
Owner of Pace Pay, Turochas Fuad, said that BNPL users feel that it helps them manage their cash flow better as it allows them to make small transactions according to their latest study.
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Let’s say you have planned to get a new monitor for your online gaming set up, and your budget is sufficient to make payments for the next three months, then why not? In this situation, you clearly know that the Buy Now, Pay Later option allows you to own the monitor, without having to burst out your monthly budget.
Avoid Impulse Buying
On the other hand, if you are on a shopping spree mode and see the Buy Now, Pay Later option as a ticket to get more items at a steal price, then you’re going to have a hard time tracking your payments.
When choosing the payment option, one has to do their due diligence to pay up on time before the late payment fees rack up. Don’t let your guard slip up and find yourself paying more than what you have to.
Be A Responsible Consumer
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Whatever it is, don’t shy away from utilising Buy Now, Pay Later services. It’s services are made available to the public so as to help buyers own an item without having to burn a hole in their bank account. It will only be a worse deal for consumers if they don’t keep up with the payment plan.
Remember to be vigilant in your spending and understand what you’re getting yourself into.
