Buy Now & Pay later with caution at Christmas
This time of year is always so expensive and I’ve seen offers for ‘Buy Now Pay Later’ when I’m online shopping. It seems like a good way to spread the cost but how can I make sure I don’t get into debt?
This is a really difficult time for a lot of people, so it’s sensible to be thinking about how you can manage.
Before you start spending, work out exactly what money you have coming in and going out each month. Be realistic about what you need for essentials like food and travel. Use the budgeting tool on the Citizens Advice website to help you set a budget.
You’ll also be able to find helpful tips on how to reduce your regular living costs
While it can be tempting to use Buy Now Pay Later, you’ll need a plan to pay the money back. If you're using something like that repeatedly, you might be managing for now, but it could be unaffordable in the long run. Keep a record of how much you owe in total.
Always make sure you understand what you’re signing up for, how you’ll make the repayments and what happens if you can’t pay on time. It’s important to check the returns process. The risk is that you’re not guaranteed to be protected if something goes wrong.
If you find yourself turning to credit cards or your overdraft, keep track of what you owe. You should prioritise paying your rent or mortgage, plus energy bills and Council Tax first, because not paying these has the most serious consequences. On the Citizens Advice website, there is information on what bills to prioritise and how to manage debts. There’s also information on the support available for paying these and other bills.
If you find you can't afford your debts after paying your priority bills and essentials, call us on 0808 278 7868 or use our contact form suffolkwestcab.org.uk/contact-us/. Our advisers are here to help you find a way forward.
