Buy Now, Pay Later is a popular way to spread the cost of an everyday purchase. It’s become a popular way to finance small-ish purchases for a short period of time – over a couple of months, for example.
You can choose to pay with BNPL at the checkout, paying the first instalment and then spreading the others over the next few months, depending on the terms the BNPL company offers.
BNPL is usually operated by a finance company on behalf of a retailer. Popular BNPL brands include Klarna or ClearPay. PayPal also has a BNPL product.
BNPL can be really useful if you’re making an unplanned or emergency purchase that you just don’t have all the funds for. It’s also a good way to spread the cost of a larger planned purchase.
Where you might get into trouble with BNPL is seeing it as a way to buy things on impulse that you don’t need or you can’t afford. Like that pair of smart trainers that have been calling your name but you already have five pairs stashed under the bed…
It pays to take care with BNPL!