In today’s time, online shopping has become everyone’s habit. In such a situation, “Bay Now Pay Letter” means buy now, Later Payo Scheme is becoming very fast. Especially the youth are liking it, because nothing can be brought home immediately without paying money-and money can be given comfortably in installments.
But the easier and inexpensive it looks, the more dangerous it can be. If it is not used wisely, then it can be overshadowed on your pocket.
1. Its benefit becomes your habit
“No payment now, will give later”-That’s the same thinking forces us to buy unnecessary things. We feel that the product is cheaper, but gradually our expenses begin to grow excessively.
2. The bill increases with hidden charges
Most BNPL companies initially say that interest or extra charge will not be charged. But if you are not able to pay a single installment on time, then you can charge up to ₹ 500-1000 late fee. Sometimes platform conveniences also add fees or tax, which are small but together a large bill is formed.
3. Can affect your credit score
If you did not make BNPL payment on time, your information can be sent to the credit bureau. This can spoil your credit score, and may cause trouble in taking a loan or credit card later.
4. Borrowing can become a habit of borrowing
Because there is no need to pay money immediately, people do more shopping. Using several BNPL at a time makes a lot of payments every month, which can be difficult to handle in time.
5. Customer’s safety is low
The BNPL provides less facility to the customer than the credit card. Even if the product is bad or returned, the EMI keeps cutting because the BNPL does not reach the correct information between the company and the merchant.
6. What is the right way?
The use of BNPL is not completely wrong. But use it only in purchases that are necessary and whose installments you can pay in time. Be sure to read the conditions before clicking ‘Pay Later’ every time and think whether you really need this thing or not.
Buy Now, Pay Later “The easier it sounds, the cheap and straight it is. If you do not use it wisely, it can put you in financial troubles.