Paylater 'buy now pay later', is now a payment service that is increasingly in demand. On the one hand, it can make it easier, as well as benefit users because of the various attractive promos offered.
But keep in mind, paylater is also no different from other 'how to borrow money first' such as credit cards and loans (online loans), in which the borrower should ideally not be negligent in carrying out the obligation to pay or the risk of getting into debt is ready to lurk.
Millennials need to remember these three things, considering that according to data from the Consumer Culture Report from the public relations agency 5WPR (2020), compared to Gen Z, millennials tend to spend more impulsively.
To be still on the track. Listen carefully, come on.
The presence of a paylater does make you able to get the desired goods/services faster, even though the cash funds are not sufficient. Then, don't forget that these goods/services are not obtained for free, plus there is the potential for interest that will also add to your total purchases.
After looking at the installment scheme, make sure you can really pay off on time, even the amount of money to pay the installments should also not interfere with your cash flow for other life needs.
Use it wisely according to the given limit, and make sure the amount of paylater installments does not exceed 30 percent of your monthly income so that basic needs can still be met and do not experience bad credit.
Usage Less Than Limit
The limit given by the paylater to each user can be different. You should keep your expenses less than the given limit. Even awareness like the points previously mentioned, about your ability to pay.
The existence of a paylater credit limit is actually to control expenses and prevent users from having installments that exceed their ability.
Even so, over limit may also occur when your transaction approaches the limit and pays it in the minimum bill. When over limit, paylater can charge a fee of up to 5% of the amount of credit that is over the limit. Duh, it just keeps piling up debt!
Not excessive
Finally, understand that something in excess is potentially not good in the future. Moreover, the tendency to buy goods impulsively too often is supported more easily by the presence of a paylater. In this case, someone can tend to buy things that are not really needed.
Even though you feel you can pay it at a later date, consider checking your cash flow again, because you don't let your installment expenses seem small, but when you add up, they are more than your income. The risk of depleted savings, being in debt to a bad credit risk record can be unavoidable.