At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.
In today’s blog post we share with you our opinion on buy now, pay later facilities.
When are they helpful?
There are brands like Afterpay and Zip, and these facilities can be helpful if you are in a bind.
Let’s say you have started the process of becoming financially free and you are saving your emergency fund as we talked about in previous posts, and something happens that you need to sort out.
Like the roof caves in, or your car breaks down, or something necessary like that. I think, as an alternative to loans and credit cards, buy now pay later can be a good thing.
When shouldn’t you use them?
However, using buy now pay later for consumerism, for a better TV, for some clothes, because I’m not happy with my wardrobe and I’ve gotta go out to a wedding, or things like that, we would recommend not doing it.
Essentially it’s just debt. I know it’s been heralded as not debt. But I mean, if you can’t afford something and you have to borrow the money that you have to pay back to obtain this particular item, it’s debt, and it’s the same as using a credit card or going to Harvey Norman and ticking up something that you just want and don’t necessarily need.
Our mission
I mean our whole mission is really tightening the belt and reigning in the use of consumer credit. Until you have built your own wealth behind you and you could just buy things when you need them.
That is the freedom that we try to teach.
Misleading marketing slogans
Interestingly enough, buy now pay later have some really, in my mind, misleading marketing speak on what services they offer. I’m gonna share some with you.
This one comes from Zip. “The purpose of Zip is to create a world where people can live fearlessly today. Knowing that they are in control of tomorrow.”
I don’t feel in control of tomorrow, knowing that I’ve ticked up all the stuff that I’ve gotta pay them back or that debt collectors are coming because, you know, they made it too easy.
Let’s listen to one from After Pay. “We are proud to be creating financial freedom for all.”
Who knew? Come and borrow a heap of money to buy heaps of stuff, and even though you have to pay us back and it’ll be a lot of pressure on you, we’ve created financial freedom.
Bollocks!. I do not agree with it.
It’s not created for you
Buy now pay later, like a lot of credit, is not created for you.
It is not created for you, the consumer, to get ahead in life.
It is created for the merchant, the shopkeeper, and the business, for them to be able to sell you more things, even though you cannot afford it.
Our view
Please be very wise with your buy now pay later just like you would be with your personal loans and your credit cards. There is really only one solution. If you found yourself a little bit ticked up to the eyeballs with debt.
The only real solution is to miss out. I know it’s not sexy. I know it’s not fun, but you just have to miss out.
That’s a wrap
So what do you think? Will you be more careful about how you use buy now, pay later facilities?
If you need any financial help or advice please get in touch with us at Super-Advice.
