Work point:It is important to know the terms and conditions while buying goods from 'Buy Now, Pay Later', otherwise you can get trapped in the debt trap
It Is Important To Know The Terms And Conditions While Buying Goods From 'Buy Now, Pay Later', Otherwise You Can Get Trapped In The Debt Trap
TPN24 Desk 
The festive season has started. Now there will be a plethora of 'Buy Now, Pay Later (BNPL) offers. Under this interest-free loan facility, you can buy any item and pay its price after a few days. Loan companies and banks bear this cost and give you a moratorium of a few days to repay the loan without interest.
However, without knowing its terms or conditions, taking advantage of it can be overwhelming for you. Today, what are the things you should keep in mind before taking advantage of BNPL, and what kind of problems you may have to face if you do not pay the money on time. Telling about it.
What is 'Buy Now, Pay Later?
According to 'Buy Now, Pay Later, you can shop even if you don't have money. Suppose you want to buy a 5 thousand one mobile phone on 25th September, but you do not have money. In such a situation, with the help of BNPL, you can buy the phone. Once there is a balance in the account, you can pay this money or get it converted into EMI.
Interest and penalties will have to be paid for not paying the money on time.
Before taking advantage of BNPL, the most important thing is that you have to pay the money within a fixed time frame. Failure to do so will result in you paying interest. This interest can be up to 24% on the outstanding. Apart from this, a penalty is also collected from you.
Bad effect on credit score
If you do not return the money by buying goods on 'Buy Now, Pay Later', then it affects your credit score badly. This may make it difficult for you to get a loan in the future.
Before doing BNPL, it is necessary to prepare to pay it on time, using the BNPL facility, you should buy only such items, which you can pay on time. Otherwise, even less visible charges can turn into heavy interest or penalty amounts.
Be Careful While Buying Goods on 'Buy Now, Pay Later' Caution
Before taking any item on 'Buy Now, Pay Later', check the price of that item on other e-commerce sites or offline. Apart from this, read carefully the terms and conditions of the 'Buy Now, Pay Later service.
Take advantage of the facility only when absolutely necessary,
says Pankaj Mathpal, a personal finance expert and founder and CEO of Optima Money Managers, that such offers often lead to extravagance. If people make purchases beyond the capacity of their pockets, it becomes difficult for them to repay the loan later. Therefore, buying on credit should be avoided unless absolutely necessary.
