How To Stay Out Of Trouble With Buy Now Pay Later
The COVID-19 pandemic may have dealt the death blow to the indoor shopping mall and the table service restaurant chain, but, like all eras of financial hardship, it also saw the rise of businesses offering new, affordable services. Buy Now Pay Later (BNPL) services have expanded greatly since early 2020. A BNPL arrangement is the opposite of layaway; you pay for the item in installments, but you receive the item upon payment of the first installment instead of the last. BNPL is especially popular with young consumers and those with a limited credit history, because it is much easier to qualify for than a credit card, and some BNPL offers charge little or no interest. It is possible to get in over your head with debt with BNPL purchases, just like it is with credit cards, but being strategic about BNPL can help you avoid making purchases for which you will struggle to keep up with payments. A Boca Raton debt lawyer can help you if you are struggling with BNPL debt.
Keep a Written Record of Your Installment Plans
The low monthly payments of some BNPL agreements seem irresistible. Who would pass up an opportunity to pay $20 per month for a designer watch? If the watch costs $700, it will take you 35 months, that is, nearly three years, to pay it off. That is perfectly affordable, provided that you do not experience any gaps in employment during those three years. The problems start if you click to sign up for BNPL plans for numerous big-ticket items; before you know it, your monthly BNPL bills could add up to hundreds of dollars.
The easiest way to stop your BNPL bills from getting out of control is to write down what all your BNPL payments will be for the coming months. You can do this on a phone app, but it is even more effective to make a physical chart with pen and paper, with different colors of ink representing the different purchases. This might be enough to convince you not to buy a new TV monitor on BNPL until the watch is paid off.
Don’t Overpay for Convenience
BNPL might be the fastest way to get sought-after items, but it is not necessarily the cheapest. Yes, it is better than racking up interest on a credit card, but just because a new electronic device can be yours for a click and a twenty (and then another and another, and so on), it still pays to comparison shop to make sure that you are getting the item for a competitive price. BNPL thrives on impulse purchases, and impulse purchases are a major obstacle to getting out of debt.
Contact a South Florida Debt Lawyer About Getting Out of BNPL Debt
A South Florida debt lawyer can help you find short-term and long-term solutions to your debt problems if you are struggling because BNPL purchases seemed more affordable than they turned out to be. Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.
Source:
newstalkkzrg.com/2022/11/07/bbb-offers-advice-about-buy-now-pay-later/
