Pay Later options might look very attractive, especially if you don’t have a Credit Card, or you’re already at your limit on your Credit Card – however there are still things you need to consider before committing yourself to one of these plans. Some Pay Later plans might have no initial fees and no interest payments – it is still considered debt and you will need to pay on time to avoid additional fees (e.g. Late Payment fees).
When you set up your Pay Later plan, deductions will be made automatically from your nominated bank account, which means you won’t have these funds available for other expenses; and if you overdraw your account your bank may also charge additional fees.
Also be aware that while you don’t need a Credit Check to use a Pay Later plan, the debt will still appear on your Credit History, and can affect your Credit Score if you miss a payment.
There is considerable temptation to buy items now, whether you’re buying instore or on-line. Often the Salesperson will try to ‘upsell’ you to a Pay Later plan – then they get their sales commission and you are committed to extra repayments in your budget.
If you want to discuss what might be a better solution for your situation, then come talk to a Financial Mentor at BSNC who can explain all your options, they will help you select one that works best for your situation.
Not all debt is bad debt, and in the right situation a Pay Later plan can be a good option for your situation. To ensure you’re getting independent advice on what is best for your situation, that’s where a Financial Mentor can help.
Our Financial Mentors will help you prepare a Budget to see what you can afford, and at the same time they’ll also give all your expenses and current repayments a review to check you are not paying too much in repayments to multiple providers.
Our Financial mentors can also help you understand the Pay Later provider’s Terms and Conditions, and what options you have if you can’t make a payment. Talk to us today – we’re here to help you manage your money better.