According to Arnie Cabiles, an owner of Achievable Wealth LLC and a certified financial planner, the entire process is like layaway; only you receive your purchased item instantly. In layaway, shoppers place a deposit on products to “lay it away” for later pick-up when they are financially positioned and can quickly pay off the balance.
If you don’t have the credit or are unwilling to place a large balance on your card, go for the buy now pay later option as it’s convenient for furniture. Although, once you have availed of the opportunity, keep your memory refreshed as it is the kind of debt, and you have to defray the cost of the product.
Cabiles said; initially, you can’t control when it comes to buying furniture and purchasing it, but later, there might be some problems while paying off the balance.
Also, here is a little guide about which products to consider while purchasing through this interest-free transaction method.
What Should You Buy with Buy Now Pay More?
Neither buys now pay more option affects the actual cost nor requires an extra amount but holds your item and gives it to you right away. As a result, you don’t need to buy everything you see at the shop. Because customers find this thrilling and a bit convenient, they buy whatever they like, thinking they can pay later.
It is being said that buying now and paying later is beneficial in some situations. If you need any high demand or short supply product now that you can’t get later or lacking that product may become a hurdle in your significant tasks, choose the buy now pay later option. Otherwise, unnecessarily shopping can lead you to trouble and more outstanding debt.
Furthermore, significant products, home appliances, or furniture that exceed $500 can be suitable with buy now pay later offer, says certified financial planner Helen Ngo, CEO at Capital Benchmark Partners.
Also, Ngo stated through an email that if anybody doesn’t want to spend a lot of cash at once, the money will be under checking, and the person can use it without depleting it.
For example, it may happen with those customers who utilize programs such as QVC’s Easy Pay and HSN’s FlexPay to buy products, appliances, furniture, and other home essentials in monthly installments.
When and How Much Should You Pay?
Payments arrangements have been spread out so that all customers must know when and how to pay. For instance, Afterpay allows consumers to pay 25% of the total cost straight away while picking up the product, and then the remaining charges will be paid every two weeks. This shows that the amount is split into three small payments.
Also, don’t overspend your money if any product seems reasonable or of low cost; pay off the amount you bargained for.