Buy Now Pay Later

Buy Now Pay Later can seem like an easy way to pay for things but you can end up in financial difficulty when you spend and borrow too much or have too many accounts.

Buy Now Pay Later

Buy Now Pay Later (BNPL) is advertised very widely. It is offered as a payment choice when you are buying goods and even services. It may seem like an easy way to pay for things but the reality is that there are risks – you are borrowing money and you can end up borrowing more than you can afford to repay.

WHAT IS BUY NOW PAY LATER?

Buy Now Pay Later (BNPL) is a loan you can get when you buy goods and services. You then repay the loan in instalments over time.

With some BNPL lenders, you must pay off your purchase over a few weeks, for example, the first instalment at time of purchase then three further instalments due every two weeks. For more expensive purchases, you may get a longer time to repay but you may also have to pay high fees such as an establishment fee and ongoing monthly fees.

Other BNPL lenders give you a spending limit, such as $1,000, $2,000 or $3,000 and require minimum monthly payments, for example, $100 per month. These lenders charge a monthly fee which will need to be paid in addition to your minimum monthly repayments.  If there is no balance owing at the end of the month then no monthly fee will be charged.

Examples of Buy Now Pay Later lenders are Afterpay, Zip Pay, PayRight, Openpay, Humm and apple Pay BNPL.

Risks of  using Buy Now Pay Later

Buy Now Pay Later lenders are not regulated under the Credit Law.  This means you have less rights and protections as a consumer.  Before you sign up and use a Buy Now Pay Later lender, or even if you already have, make sure you understand the risks and consider using other less risky options.  Read more about the risks here.

 

Difficulty repaying Buy Now Pay Later debts

If you already have one or more Buy Now Pay Later debts and struggling to meet your repayments, then follow these steps to get your debts under control.

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You might feel overwhelmed, but you have options and there are steps you can take yourself. But if you feel you need a bit more guidance or need help quickly, simply call us.

CALL 1800 007 007