Buy now, pay later - dos and don'ts

Buy now, pay later schemes mean you can purchase something now, then pay for it over time, often with no interest or fees. What’s not to love? Well, a couple of things actually. 

Work those buy now, pay later schemes 

Buy now, pay later purchases can add up quickly, so there’s a risk of putting yourself in a position where you can’t cover repayments. Remember, these schemes are just another form of debt, like overdrafts or credit cards.

Consider these before you commit: 


  • There are multiple services out there, so do your research and opt for the one that suits how you want to pay it back, and that offers the lowest missed payment fees.
  • Only use one service. Don’t be tempted to make purchases over multiple schemes, as this can be a messy juggle.
  • Set repayment reminders. By keeping track of when payments are due you can make your payments on time and avoid racking up missed payment fees. Because even though most schemes are interest-free, those late fees could soon add up.
  • Make sure you read the fine print and understand what happens if you miss a payment. 


  • Miss repayments and start accumulating fees. If you miss too many, it can affect your credit rating. Your credit rating is an indication of how likely you are to pay your bills on time. Your credit rating is taken into consideration when you apply for things like a credit card or home loan.
  • Shop impulsively, or you could simply be landing yourself with avoidable, unwanted debt. It can be tempting to purchase something in the moment when you don’t have to pay for it straight away. But eventually you will.

When it comes to buy now, pay later, it really is buyer (as in you) beware. 

Important information

This material is information only and you should seek professional advice about your circumstances.  We’ve taken care to ensure the information is reliable, we don’t warrant its accuracy, completeness, or suitability for your intended use.  To the extent the law allows, we don’t accept any responsibility or liability arising from your use or reliance on this information.

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