Understanding Buy Now, Pay Later – small payments can add up over time
What is Buy Now Pay Later?
You probably use Buy Now Pay Later without even knowing it! It’s where you spread the cost of something over 2 or 3 months, only paying a little bit now. It’s usually 0% interest so can be a great way to spread costs, especially at Christmas. However, if you fall behind with a payment the late fees can add up very quickly.
You may have heard or used some of these organisations that all offer Buy Now Pay Later options, often at online checkouts:
- Klarna
- Zilch
- Clearpay
- PayPal
What can I do if I can’t pay my Buy Now Pay Later bills
It can be easy to overspend at Christmas and it’s only now when you add up all your payments that are due you realise you cant afford to pay everyone. The late fees that some companies charge can be very high. If you cant afford the repayments, like with any bills, the first thing to do is always contact the provider to see if they can help.
Below are the links to the late payment pages that may help you see what your options are
If you’re struggling with debt, free and independent support is available, and speaking to someone can help you understand your options and feel more in control.
You can get free support from trusted organisations such as:
Moneyline and other options
If Buy Now Pay Later payments feel difficult to manage, it’s important to consider your options carefully.
Some customers explore consolidating repayments into a single payment over a longer period. Where appropriate and subject to affordability checks, Moneyline offers personal loans that may be suitable for some customers. Taking out a loan is not right for everyone, and you should only consider borrowing if you can comfortably afford the repayments.
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