You simply use one of the emerging arrays of “buy now – pay later” payment options, like Afterpay or Zip Money, to name just two.
These companies provide short-term financing (usually $1,000 to $2,000), often structured around weekly or fortnightly instalments. Short-term financing may, in some cases be interest free however fees still apply, particularly if repayments are not made on time.
The Australian Securities and Investment Commission (ASIC) recently released a report into the operations of ‘buy now – pay later’ schemes and how this emerging trend is influencing our buying patterns, especially the younger generation.
In its report, ASIC notes that in June 2018, 1.9 million transactions were made using ‘buy now – pay later’ with the total amount outstanding at almost $1 billion.
While ’Buy now – pay later’ arrangements offer convenience enabling individuals to purchase items without having the cash immediately available, the money has to be repaid at some stage. Like credit cards, these finance arrangements can be a wonderful servant, but a terrible master.
If planning to purchase something with any kind of credit, always check you budget first, taking into account any upcoming bills, and ensure you will have the money to make the payments as they fall due, without enduring stress.
Cutting spending, reducing debt and accumulating savings is a far more positive measure of personal financial and mental well-being. If you ‘must’ have that item, consider saving up before you buy it. You will feel so much better about your purchase.
In June 2018, 1.9 million transactions were made using ‘buy now – pay later’ with the total amount outstanding at almost $1 billion.