There are several factors that are contributing to the surge in popularity for BNPL. The main factors are the adoption of the payment option by many online retailers and a selection of high street retailers, such as ASOS, Homebase, Amazon, and Boots. It has even been labelled as the “the future of millennial finance”, gaining a strong foothold among shoppers with tight budgets, who are looking for flexible ways to spread or defer payments.

Many BNPL providers offer an “Interest free” service. However, it is important to note that although you may not be paying any interest on the purchase, you are still entering into a credit agreement and that means that you are borrowing money. The costs associated with BNPL come in the form of late fees. Therefore, it is very important to consider whether this option is right for you, as missing a payment set by the provider can result in significant fees being added to your bill.

Most BNPL insist on making weekly repayments for a set period, therefore it’s important to avoid impulse BNPL purchases if they exceed your budget. Only making purchases within your set budget is important when considering the BNPL option. Although it might be tempting to make a purchase now and pay for it later, the costs soon build up on missed repayments. Using our budget planner can help you to set money aside, accordingly, click here to start planning today.

A straightforward and practical way to consider a spending decision is to decide whether the product that you have seen is a want or a need. One of the concerns surrounding BNPL and its popularity is that it can influence consumers to spend more money on impulse purchases, therefore it’s always wise to question yourself. Using this rule of questioning a decision can be helpful, as it can ultimately save you a lot of money.

Noting down your payment dates for BNPL can help you to avoid missing payments and incurring late fees. If you have a set date for repayments, consider creating a reminder on your phone that will prompt you to make your repayment. If you had some spare funds, you may also consider making an early repayment, if your BNPL provider has this option available. Direct Debits might be available with some providers, however, keep in mind that this is not an option for all providers.