buy now pay later.

DmxDex

I would like to make a big purchase for a new tv. On buy now pay later do you have to make a payment every month? I do not want to get any suprises. I intend on paying the money by the time the 9 months are up.
So if I miss a month will I get hit?

DCFC79

I think generally BNPL is where after say 9 months you pay what's owed, why not look up examples on the net as to what BNPL involves ?

DCFC79

DmxDex wrote: »

I would like to make a big purchase for a new tv. On buy now pay later do you have to make a payment every month? I do not want to get any suprises. I intend on paying the money by the time the 9 months are up.
So if I miss a month will I get hit?

Your thinking of items on credit.

Why a big purchase ? Define big ?

If you bought it on credit and pay a monthly fee where will this fee come from if not been saved up ?

Apples2

These deals differ, you would have to look closely at the terms.

If you are required to make monthly payments but missed one, it is very likely the contract will be broken and with it, any special offer e.g 0%. You would end up paying massively more

If you are already thinking of missing a payment before you have even signed up, don't sign up.

Some deals you pay nothing but have to clear the balance before the end of the special offer term. In your example by month 9. If this is so, pay it all off in month 7

Wilkins

Why don't you save up for it? Then you won't get any surprises, it will cost you less and you may get a newer model.

sscott5581

BNPL usually means just what it says. You buy an item now and pay for it later, anything from 6 to 12 months.

As long as the full payment is made before the deferred payment date then no interest will be charged. However if the payment is not received by this date the full interest will be added and the loan will run its course. So make sure you note that date and pay before then.

I bought a laptop from Scan and this was on BNPL 9 months underwritten by V12 finance. The full payment £1538 including administration fee is by 9th Dec if this payment is not made then direct debits would be taken for 39 payments of £68.

Good luck!

bengal-stripe

sscott5581 wrote: »

.......However if the payment is not received by this date the full interest will be added. So make sure you note that date and pay before then.

The interest will be due from the day of purchase, not from the date the payment was due. Even if you pay most (but not all) of the amount, the interest will become due.

You sign up thinking in nine months time you will have saved enough to pay it all in one go; but for whatever reason you cannot do that, then they will have you by the short n' curlys. That's how these deals make their money. Most people overestimate their ability to save.

Herzlos

Yup, be very careful to have it fully paid off in time, or you'll be paying a fortune. Ideally by paying 1/9th of it into a savings account each month.

StuC75

The other potential pitfall, is where people slightly Miss the due date with the full payment and find the Lump amount only acts to prepay the account for X number of years, and are then chased years down the line - Saw this a lot when I worked what was GE many years ago (on currys BNPL's)...

A Cleaner option can be a Credit Card with an Interest Free period on Purchases - or transfer after buying on another card - this allows you to easily make monthly payments to it without attracting any other admin fees..

StuC75

If its over 9 months - then best bet to save for it over 8 months -since every possibility the 9th Month would be too late to count..

Its like with credit cards - the interest free period is to the statement date in that month, and not the following due date..

Herzlos wrote: »

Yup, be very careful to have it fully paid off in time, or you'll be paying a fortune. Ideally by paying 1/9th of it into a savings account each month.

Clive_Woody

sscott5581 wrote: »

I bought a laptop from Scan and this was on BNPL 9 months underwritten by V12 finance. The full payment £1538 including administration fee is by 9th Dec if this payment is not made then direct debits would be taken for around £36 for 36 months. A huge whack of interest.

So full payment is £1538

or with interest charged

36 x 36 = £1296

Not sure you've got your figures right there. Either way that's one expensive laptop.