Page 23 - Real Estate Now May-June 2022

Buy Now, Pay Later Payment Plans:

Be Vigilant

courtesy NC)
any companies, especially in retail, are offering buy now, pay later plans when shopping for products and
services. With this type of plan, you are financing your purchase with credit. But before you agree to this
Mtype of purchase, make sure you understand the terms and conditions of these plans.

Here are questions you may want to ask yourself before you sign a buy now, pay later plan:
• Do I really need this item?

• Do I have the discipline to pay off the balance by the
due date?
• Can I afford the higher interest charges and applicable
fees if I miss a payment or can’t pay off the balance by
the due date?

Also, consider the pros and cons of buy now, pay later
plans:

Pros:
• You can purchase something you need and spread the
payment over a period of time to fit your budget.
• You can take advantage of a low or no interest rate
if you make your payments on time and pay your
balance before the due date.

Cons:
• It can be an expensive way to borrow money if you
miss a payment.
• Fees may apply, meaning you might pay more than
the retail price of your purchase.

• Taking on debt may lead to over-borrowing if it’s more
than you can afford or doesn’t fit your budget.
• You might put your credit at risk.

• You might misjudge the actual/total cost of the
purchase.
• It could encourage you to spend beyond your means
or make impulsive buys.

If you have a complaint related to your buy now, pay
later plan, contact the plan provider. Depending on your
contract, you may also need to contact the retailer.
Find more information at canada.ca/money. ■

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