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The Pros & Cons to Afterpay and Buy Now Pay Later

By September 18, 2017Budgeting, Credit Card, Debt

We are seeing more and more options coming up in our lives for a ‘buy now and pay later’ and it makes me weary that a lot of people don’t know enough of these before they sign up and make a commitment to them.

That’s why I want you to be educated on them before using.

Firstly I want you to ask yourself some questions…

  1. Why are you using this service?

  2. What are the cost’s to you for this service? Are you going to have to pay late fee’s because you aren’t going to pay in time?

  3. Do you actually NEED to buy it?

Okay now that you have it sorted, lets look at the pro’s and con’s of it.

Let’s get into the Pro’s of Afterpay

  1. If you HAVE the money it’s a way to keep your money in your account longer.

  2. It’s quick to set up and no credit checks (they have third parties that do checks on you!)

  3. No fees for the customer, just the merchant/retailer.

  4. Can be used instore and online.

The Con’s….

  1. You can easily spend a lot of money without realising and when it comes time to pay the debt off you’re going to have to find the money to make the repayments.

  2. You’re spending money you don’t already have. Ask yourself if you have the money to make all the repayments…if the answer is NO, or I’m going to struggle…it’s another reason to show why you shouldn’t be using it.

  3. You’re buying ‘stuff’ just for the sake of it (it’s a want) not a need, if you’re having trouble sorting out your money stuff, you have to make your NEED’s a priority over your want’s.

  4. Bank’s don’t look favourably at Buy Now Pay Later. A mortgage broker told me a story of a client who they were in the process of getting a million dollar loan and they had $400 on a buy now pay later, the bank would not approve the loan until the amount was paid off.

  5. There are no limit’s the company uses it’s own digression as to how much it will allow you to spend.

  6. Late payments fees and dishonour fees, that soon add up if you are unable to make your payments.

Why am I telling you this…because I work with those who need to get their spending habits under control because they are stuck in this cycle of never having enough, and who instead want to rapidly reduce their debt, create a savings plan and start saying YES to the things they truly want more often.

And what I have seen from all of my clients is that one of the reason’s they can’t get their spending habits under control is because they have become to accustomed to paying later and later creates stress and a whole other set of problems!

Are you someone that want’s to get control of your money? Join me on my Free Online Workshop where I show you the 5 Action’s that are EASY to take to get Control of Your Money, Debt & Savings without even doing a budget! Find out when the next one is being held HERE



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