$100 Late payment fee, $250 Early repayment feeThree, six or 12 monthsThree or six months: 3 per cent, 12 months: 5 per centCompared to Buy Now Pay Later companies, it seems like a bad idea to opt for credit cards' 0 per cent interest instalment plans because not only do they tack on processing fees, but they also penalise you for paying early.
If you really, really need to split your purchase into instalments, we'd say that the Buy Now Pay Later services are the lesser evil compared to credit cards. At least the tenures are reasonably short, and you can repay your mini-loan early and not get charged for it. For example, let's say you need a PC monitor or decent office chair for your WFH setup but don't have that much cash right now. You could probably save up for it in three months, but what would be the point? We might all need to be back at work by then.In this case, a BNPL plan might make sense. You could benefit from an improved WFH set-up right away while breaking up the payments into more manageable instalments. And you'd still have money left over for food this month.
Remember that opting to "pay later" is essentially borrowing from yourself in the future. Should you run up some emergency expenses next month, you might end up regretting your BNPL purchase.
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Source: TODAYonline - 🏆 1. / 99 Read more »