The buy-now-pay-later trap and how to avoid it

The dreaded buy now pay later trap and how to avoid it

Everyone gets tempted now and again to put something on the ‘long finger’, but is it really worth it? 

Video 2 of the excellent UCC series on financial literacy takes a look at the idea of Buy Now Pay Later or BNPL. Although not like the scams covered in their first video, it can sometimes feel like it when you see the interest rates and terms of the loan. 

Video #2 Buy Now And Pay Later

The premise is simple but all too familiar. You see something online you’ve wanted since forever but you don’t have enough money on hand to buy it now. 

‘Luckily’ you don’t need to save up because you can have the thing you want, in this case a coat for €150. That’s a lot if you’re clued into the bargains in Penney’s or, god forbid, you’ve been using Shein to get your online deals. 

Free Money - With Sleepless Nights at No Extra Cost

It’s like ‘free money,’ the guy says before the bargain-hunting couple high-five each other and then go on a spending spree, buying things with no money down. 

Pretty soon, the BNPL payment reminders are dinging her phone, followed by late payment fees and, ultimately, debt collectors. 

It’s a scary thought if you’ve ever been in the situation, and the middle-of-the-night anxiety depicted is very real and very unpleasant. 

Staying Out of Debt is Easy

The fix for this one is as simple as it gets: Think before you buy now, pay later. 

Do you really need it? Can you even afford it? The answer is clear: if you don’t have the money to buy it now, you shouldn’t be buying it at all. 

It can happen to the best of us, though, so if you’re currently in financial difficulty and struggling to make payments, make sure to get in contact with Mabs.ie for free, confidential financial advice. 

Check out the next article in the series on the problem of 'money muling' and how to spot it.

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