Buy Now Pay Later Debt
Buy Now Pay Later Debt
We could write off up to 85% of your unaffordable debt
Table of Contents
What Is Buy Now Pay Later?
Buy Now Pay Later is a type of unsecure credit that enables the customer to purchase goods by either by paying for them at a later date, or by paying for them in instalments.
There are several providers of Buy Now Pay Later (BNPL) including:
You can often find them in the payment section of a website offering such deals as splitting the cost over 3 months.
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How Does Buy Now Pay Later Work?
Catalogues and high street shops have offered Buy Now Pay Later offers for many years, however now the internet is catching up.
When ‘Paying Later’, purchases can often be delayed for up to a month.
Otherwise, you you spread the cost of the purchase over a period of several months.
The credit offer is often made at the point of providing your payment details. Instead of entering your card details, you will be offered a link to Klarna, or another similar provider.
Here you will be able to apply for the credit and enter bank details for the instalments or future payment.
Once this is completed you will be directed back to the website of the vendor, where you will be able to conplete your purchase.
What Makes Buy Now Pay Later So Popular?
BNPL offers consumers a huge amount of flexibilty to make purchases without the need of waiting for pay day.
This can be especially convenient during times when people may want to take advantage of discounted prices during a period where money is tight. This is particularly the case during the January sales; you may still be short of money due to Christmas, but you also want to make the most of lower prices.
Whilst shopping, retailers will ensure that the BNPL offer is there in your online basket once you have added your items, since if you see your total price, they want to ensure you don’t change your mind. Why pay £100 pounds now when you could pay it next month or instead, pay £33.33 for the next 3 months?
Of course, you should abandon that purchase, if you can’t afford to pay.
How Do People Get Into Debt With Buy Now Pay Later?
When making lots of purchases online and taking advantage of BNPL offers, it can be challenging to keep track of how many monthly payments you are committing yourself to. It is incredibly tempting to make those impulse purchases when faced with a discounted price we don’t feel able to miss out on.
If you cannot afford £100 this month, then after a shopping trip, can you afford £100 of repayments for the next 3 months? Probably not.
As with most credit providers, late payments can accrue fees and extra interest payments, adding to the overall debt owed, creating an ever worsening problem.
Who Can Help Me If I'm Struggling With Debt
If you are having difficulties with your debt or perhaps you are currently the subject of an administration order. Help is available and maybe there could be a better way to clear your debt. Contact IVA4Me and take that first step towards a new life.