Forum Thread

Are buy now, pay later services a good thing?


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    I'll be honest, I've used these services quite a bit. Klarna, Sezzle, and Afterpay. The funny thing is that I've used them so often, and yet they don't come up in everyday conversation. I've used them to pay for shoes, presents etc. I really haven't seen a problem with them per se. But I could see how one could get overwhelmed if they don't keep track of what's going where and how much. For those who aren't familiar with these services, they're an alternative way to pay for online goods. Instead of paying it all off in one lump sum, you can pay it off in interest free installments. Which comes in handy if you don't have the money upfront, or don't have a credit card. Has anyone else used these services? If so, what have you used it for?
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    I haven't used them myself but now that you mention it, I have noticed these companies under products I look at online pretty often lately. I figured they were in-store credit partnership companies of some kind or another. Is interesting if you can truly do 0% financing. But definitely would caution against it if not. Or like this guy says, if you don't have the money you probably shouldn't be buying said item like this.

    I'm sure there's other videos saying its OK but that's the first one I came across and everything he says makes sense to me.

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    In my amateur opinion, things like these would only be a good idea if you have a concrete plan to pay off whatever you buy before the promotional period is up.

    I made a terrible mistake in my 20's and bought a bunch of stuff from [insert national chain TV & appliance store here] for "0% interest." I didn't pay my debt off in time and wound up paying easily 3 times as much as I would have if I'd simply saved up and bought my "toys" with cash.

    I personally shy away from these types of things after that experience, but they are a decent option for someone in a crunch now but are sure they can pay it off in full before the promotional period is up.

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    Old Sport Wrote:

    In my amateur opinion, things like these would only be a good idea if you have a concrete plan to pay off whatever you buy before the promotional period is up.

    I made a terrible mistake in my 20's and bought a bunch of stuff from [insert national chain TV & appliance store here] for "0% interest." I didn't pay my debt off in time and wound up paying easily 3 times as much as I would have if I'd simply saved up and bought my "toys" with cash.

    I personally shy away from these types of things after that experience, but they are a decent option for someone in a crunch now but are sure they can pay it off in full before the promotional period is up.

    Yikes. I would say just make sure you have automatic payments setup, and make sure you have enough in the account to cover it. I hear there are penalty fees and whatnot associated with not paying.
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    Yeah I second that. I've used these before and it's a little easy to forget that you bought something using this service, especially when you have already received the item. I think that's why they do this because they aren't making any interest off of this. So I think they make their money off of people forgetting and incurring late fees.