Don't use Buy Now Pay Later before watching this... #moneytips #podcast #debt

This one simple tip can help you use BNPL responsibly and preferably avoid it altogether. BNPL has its drawbacks…

- Buy Now, Pay Later can encourage irresponsible spending. The way it is structured can encourage impulse buys – if you can’t afford to buy a pair of jeans or shoes in one go and need to spread the cost, should you really be buying them in the first place?

- It’s easy to build up debt that might be difficult to pay off, particularly if your financial position changes. For example, if you lose your job or have a sudden, unexpected financial outgoing.

- The penalties you may incur for missing payments are high relative to the value of the goods you are purchasing

- By making a purchase through a third-party, you sacrifice the consumer rights you are afforded by section 75 of the Consumer Credit Act, which applies to credit card purchases over £100.

This video is an extract from the weekly Money to the Masses podcast. Out every Sunday on Spotify, youtube and every podcast app.

For more info on BNPL and the problems facing BNPL lender LayBuy see the associated video.

#debt #debtfreejourney #money #finance #MoneyGoals #money #FinancialPlanning #debtfree

[yolokitty]

Buy now pay later is something I’ve only ever used once or twice. Do it out of necessity not because it’s simply an option. Don’t take a bigger bite than you can chew. Being able to make all ends meet while still being able to save and invest should be everyone’s ultimate goal. Not everyone wants to be rolling-in-it rich, but this is definitely a great point for any average person. Good clip.