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Is “Buy Now, Pay Later” Ruining Your Finances?

By , Posted on Jun 19, 2015
Budgeting Debt. Saving Money
Budgeting Debt. Saving Money

“No Interest for 90 Days!”  …”No Payments for 12 Months!”

For some, this is the best sounding advertisement they have ever heard.  “So I can get the new furniture that I’ve always wanted, and won’t have to pay for it for a whole year?”  Sounds great right?  …Wrong!

Deferred interest and payments can be a great way to buy new stuff, and can actually save you some money. But, only if you pay off the debt before the end of the year!  …and most of us don’t!

Look before you leap!

Before you jump at the opportunity to buy something on a “buy now, pay later” plan, make real sure you fully understand the agreement.  It’s true that you are not required to make regular monthly payments for the first year.  However, sometime interest is added to your balance each month, increasing the total that you are required to pay for the item.

If the deal is truly payment and interest free for the first 12 months, you can be assured that if you fail to pay off the total amount before the 12 months are over, you will be saddled with an interest rate that is quite high… often 20% or more!

If in fact you are able to pay off the amount owed, and interest does not accrue, you can save a substantial amount of money because you won’t pay any interest.

I’m sure I can afford it!

For most of us, we have the best intentions when it comes to paying these great purchases off before the 12 months are up… but that usually doesn’t happen.  And it’s poor financial decisions that gets us deeper into debt. High personal debt is common in America.  According to a recent ABC News article, “Americans are nearly $12 trillion in debt, and this figure is increasing.”

While the allure of “Buy it Now, Pay Later” is strong, it is best to give it some hard thought before you sign on the dotted line.  The “Buy it Now, Pay Later” encourages us to make purchase when you would really rather not spend the money in your pocket.  Or it attacks the “I don’t have money right now, but I’m sure I will have some later”, mentality.  …The harsh truth is that if you don’t have the money to make that purchase now, it’s likely you won’t have it “later”.

Hit the pause button!

It’s best if you can take a step back when faced with these “great deals” and give it some real thought about whether or not you really need and can afford the purchase.

In order to become financially responsible and debt free, you must abandon the mindset that you are “missing out on a great deal” and walk away from the “Buy it Now, Pay Later” deals!

If you find yourself struggling with debt or would like to find out about becoming debt free, call Debthelper at 800-920-2262, or visit @


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