Very BNPL question

[Deleted User]

Hi I was wondering if anyone could help me work out how very BNPL works if you do not pay it off before the interest free period ends.

It says this

"If you're not ready to pay at the end of the Buy Now Pay Later period you can choose to spread the cost further by paying at least the minimum amount shown on your statement. The cost will be made up of the remaining Buy Now Pay Later balance plus any interest accrued during your chosen payment free period"

Does this mean in the next statement they would charge me the full amount plus interest and I would have to pay it off fully that month?

E.g I had £200 and £40 interest my minimum payment would be £240

Thanks

bazzyb

No it doesn't mean you have to pay it in full, you can continue to make the minimum payments. However doing so would be bonkers as not only do they charge their astronomical 40% APR going forward, it would also be backdated to the date you bought the item.

Paying the balance in full before the end of the BNPL period avoids these massive interest charges.

SaraKeer

Agree with Baz. You'll basically forfeit the BNPL period and pay the interest from the start.

bengalknights

You would be charged the minimum amount which would be 5% of balance i believe.

As others state the interest would be backdated.

deanos

I bet the interest would be more than £40 on £200

You buy an item worth £200 and 12 months interest free

If you pay it off in 12 months you will pay £200 (you can pay any amount at any time in the 12 months if you wish)

If you don't pay it off the interest is backdated to the transaction date and added to the £200, for an example i have bought a washing machine recently at a cost of £220, the interest is £79

So if i don't pay it off the balance after 12 months will be £299 and then every month more interest will be added until its paid off

(PS i always pay off as APR is stupid amount)