Buy Now Pay later is exactly what it sounds like. You buy a product and can pay the price of that product over a long period of time. It is an option offered by both brick and mortar stores as well as online catalogues in the UK. This approach has its own pros and cons, as laid out below.

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Benefits:

You can shop at any time
Not having the cash shouldn’t discourage you. You can simply put down an order at any time of the year and wait for the product to get to you. Whether you are facing lean months or not, the pay later option gives you some leverage over others.

There are incentives for shoppers
In a bid to have you make a purchase, some stores will actually reduce the list price of the product you are buying in order to get you to make a purchase decision. In a nutshell, you actually get discounts on some products even if you don’t pay on the spot.

You get to spread payment
That is the whole point of this option. You can plan how you want to spend your money and budget for the payments that you accumulate. Since you are paying a little every time, you are in firm control of your budget at all times, and this is good news to plenty of folks.

Negatives:

Interest rates tend to be high
When you pay in cash, you simply pay the list price of a product. However, buy now pay later has no such incentive. Since your payment is spread over time, then you are slapped with interest, which accumulates over time. The net effect is that you end up paying way more than you would have paid if cash was involved. This is not god for your budget over the long haul.

Late payments have consequences
Should you default on your instalments, then there are penalties to pay. Such penalties include restrictions on what you can buy in the future as well as financial fines. Some stores actually fine you for paying earlier than you should have!

When looking for the Buy Now Pay Later alternative, always consider the advantages and disadvantages. Pay keen attention to what the conditions are and what the interests may be over a specific duration of time. Always ensure that you do not put your finances in a bind by going for stores that overcharge clients who don’t pay on the spot.

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