By 
Buy now pay later in Singapore is a payment method that allows you to purchase goods or services without having to pay for it in full immediately. Instead, you make certain payments at pre-set intervals until the earlier of a certain date or when the balance is paid in full.
It’s similar to installment plans but with a few important differences.
If you are looking to buy something and cannot do so right away because of your financial situation, then Buy Now Pay Later may be an option for you. Here’s what you need to know about this financing option in Singapore…
What Is A Buy Now Pay Later Plan?
A buy now pay later plan is a type of financing that allows you to buy things like appliances, furniture, or even travel tickets and hotels and not have to pay for the full amount upfront. The retailer or financing company will let you make monthly payments for the item until you’ve paid off the full purchase amount.
Read Also: How to Apply Online for an Instant Personal Loan
When you make these payments, you will likely be charged interest. So, you need to factor that into your buying decision. This type of financing option is often used for big-ticket items like furniture or appliances where people don’t have enough cash saved up to pay for the item in one shot.
Important Note: A buy now pay later plan is a form of financing, not a store credit or deferred payment plan.
How Does A Buy Now Pay Later Plan Work?
If you find an item you want to buy but can’t afford to pay the full amount at that time, you can choose to finance it through a buy now pay later plan.
The financing company will let you pay off a portion of the item over a certain period of time. You will be charged a certain interest rate for the financing.
There are a few different ways that a buy now pay later plan can work. It can be tied to your credit card. You can also be given a line of store credit that you can use for the item.
Or, you can enter into a contract with a third-party financing company that will let you pay off the item over time.
You will be expected to make payments on your item each month until the total amount has been paid off. If you fail to make payments, you could find yourself in default on the contract and facing consequences.
You can use a buy now pay later plan to buy almost anything, including big-ticket items like appliances or furniture. You can also use it to pay for travel or other leisure items.
Who Can Offer Buy Now Pay Later Plans In Singapore?
You will find that most if not all retail stores offer buy now pay later plans. You can also use them to purchase services such as repairs or other professional services.
You can also find buy now pay later plans through financing companies, often times referred to as “third-party financing”.
You can also check out the websites of individual retailers to see if they offer financing as an option.
Important Note: Not all retailers offer buy now pay later plans and not all retailers that offer financing are trustworthy. Be sure to do your research before doing business with a retailer so you can avoid getting trapped in a bad deal.
Limitations Of Buy Now Pay Later Plans
You need to realise that there will be added costs to using a buy now pay later plan, including interest charges.
You will have to make a payment every month until you’ve paid off the full amount, so this can make goods that are more expensive to purchase with a financing plan seem even more expensive.
You should make sure that you can afford the monthly payments, otherwise you risk falling behind on them and facing negative consequences from the lender.
Not all retailers are trustworthy when it comes to financing plans. Be sure to read the contract and look for any signs that the terms are unfair or that the company may not be trustworthy.
You should also realise that if you go over the allotted time frame to pay off the item using the financing plan, there may be additional costs. If you see something that you want to buy but you don’t have enough money to pay for it, you should consider saving up the money and buying it with cash.
When Should You Use Buy Now Pay Later?
If you have a genuine need for something now and don’t have the cash on hand to pay for it, then, using a buy now pay later plan may be a good option for you. Just be sure to make payments on time and pay off the full amount as soon as you can.
If you don’t, you could end up in default on your contract, which could have negative consequences for your credit score. Also, you should try to avoid using buy now pay later plans for frivolous items.
Read Also: Guide to Personal loan for low income in Singapore
Buy now pay later plans can be a quick and easy way to get the things you need or want now, but you should pay off the full amount as soon as you can. Limiting how often you use buy now pay later plans can help you avoid getting into debt and having a bad credit score.
Final Thoughts: Is Using A Buy Now Pay Later Plan Worth It?
If you are buying something that you absolutely need and can’t afford to pay for it in cash, then a buy now pay later plan can be a good option.
Just make sure that you understand all of the terms associated with the financing plan and have a realistic plan for paying off the amount you owe. If you use buy now pay later plans responsibly, they can be worth the added cost and risk. Read Also: Guide to 24 Hours Money Lender in Singapore
