Very buy it now pay later interest

vicki84

Hi 

Was wondering if anyone could help I have a plan coming to an end soon. I know if I pay in full there is no interest added.

But if I paid half the balance does that mean the added interest would be half or would that still be full.

Thanks

mr_stripey

paying half, will reduce the interest (not sure if it will half, but it will be less)

However, you will then start paying interest on that interest (see below from Very T&C's)

How is the interest calculated?

Interest is calculated from date of order and compounded daily. The interest will be added to your account as a lump sum at the end of the delayed payment period. This means you will pay interest on interest.

How can you avoid paying Buy Now Pay Later interest?

You can avoid all of the interest by paying the cash price before the end of the delayed payment period, this can be done in one full payment or multiple partial payments. Making partial payments without clearing the cash price in full will reduce the amount of interest charged at the end of the delayed payment period.

Remember, if you choose not to pay the cash price before the end of the delayed payment period a lump sum of compound interest will be charged to your account.

How do I make a Buy Now Pay Later payment?

To make a full or partial payment simply log into your account. You can allocate your payment to the specific BNPL you wish to pay off. Alternatively, you can call us.

What happens after the delayed payment period?

If you have paid the cash price in full before the end of the delayed payment period, you will not pay any interest.

If you have not paid the cash price in full or have only made a partial payment, a lump sum of interest will be charged to your account. Any outstanding balance plus the interest will now become payable.

As the outstanding balance, plus the interest now form part of your payable balance they will attract interest at your account rate, meaning you will pay interest on interest. This will be included within your account minimum payment request every month and cannot be repaid using Take 3.

apw81

Paying half the balance now won’t reduce the interest already calculated, it’ll only reduce the interest going forward.

For eg. If you have a £100 balance on a six month plan and decide to pay £50 during month five, at the end of the plan (if not paid off) the interest charged will be based on five months at £100 and one month at £50. 

That’s my understanding of how these plans work, based on my Argos Card account which reads the same as Very, when calculating interest for plans.