The convenience of online shopping has increased with the arrival of PayLater services. This “buy now, pay later” scheme offers tempting convenience, especially for urgent needs or when payday is still far away. However, this convenience is like a double-edged sword. If not used wisely, PayLater can trap you in debt.
Before you get tempted and click the “Buy now, pay later” button, make sure you've checked the following three crucial things:
1. Understand the Total Interest and Service Fees
PayLater is not a free service. Every provider will charge a certain amount of interest or service fees. Often, these fees seem small at first, but they can balloon if you choose a longer repayment period or if you are charged late fees.
What should you do?
Check and make sure you understand the interest rate charged. Calculate the total cost you have to pay, including the principal, interest, and other administrative fees, before agreeing to the transaction. This total is your actual financial burden.
2. Record and Remember the Payment Due Date
One of the main reasons people get into PayLater trouble is late payments. Late payments not only damage your credit history, but also trigger significant penalties that can double your debt.
What should you do?
Immediately note the due date on your calendar or reminder app. Ideally, prepare the payment funds a few days before the due date. Don't wait until the day itself to avoid technical problems or forgetting.
3. Carefully Evaluate Your Financial Capability for the Coming Month
Don't make loan decisions based solely on your current financial situation. Using PayLater means you are shifting your expenses to the following month. Carefully consider whether your income for the coming month will be sufficient to cover the debt without compromising other basic needs.
What should you do?
Create a monthly budget simulation. Ensure that funds to pay PayLater are included in your mandatory expenses. Avoid using PayLater for non-essential consumables if you know that your financial situation will be tight next month.
PayLater is a highly effective financial tool when used with discipline and careful planning. Use PayLater as a solution for managing short-term cash flow, not as a trap that jeopardizes your future financial stability. Always prioritize transparency in costs, timely payments, and measurable repayment capacity.
Source: skorlife.id
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