Buy now Pay later - Opinions/Advice?

butterchurch · 5 Mar 2015 at 22:08

Hi Guys, sorry if this is in the wrong area but here goes.

I sold my gaming computer a couple months back to get more important things to me like a car + insurance for the first year and until now I've not really had the money to get a computer or even think about it. Recently I've got an apprenticeship paying good money + I work a weekend job at my current work placement.

I wanted to know how the "Buy now Pay later" scheme works. I understand that of course you have X months to pay it back interest fee with a £29 admin fee or if you don't then you pay monthly + 29.9% on top of that.

I need some advice/ opinions on it as I'm a bit warey so I wondered has anyone on here done the option to pay for a full system?

Most people say "just save and buy it" but as I have things in the coming months that need buying like, car, car insurance + fuel it just seems like an easy option to have 12months to save and pay it off whenever I can.

Sorry for it being long winded, thanks guys.

FL630 · 5 Mar 2015 at 22:16

If you can't afford it don't buy it. Like many, I've experienced debt from buying stuff I really couldn't afford, it's not pleasant and will bite you in the back sooner rather than later.

RJC · 5 Mar 2015 at 22:17

Hello and welcome to the forum

Having a read at the Finance deal examples you don't pay anything for 6 or 12 months but you will need to pay the whole amount off on the date due (interest free) otherwise you will pay a monthly instalment with the interest being added.

But post in the Customer section to confirm

Stoner81 · 5 Mar 2015 at 22:20

FL630 said:
If you can't afford it don't buy it. Like many, I've experienced debt from buying stuff I really couldn't afford, it's not pleasant and will bite you in the back sooner rather than later.

This pretty much sums it up.

If you really are not sure then my advices is don't go ahead with it because by then it will be too late and that is not a pleasant road to go down at all.

Stoner81.

butterchurch · 5 Mar 2015 at 22:21

FL630 said:
If you can't afford it don't buy it. Like many, I've experienced debt from buying stuff I really couldn't afford, it's not pleasant and will bite you in the back sooner rather than later.

That's what a lot of people say but for me earning £1000 a month as an apprentice it seems much more easier to just buy it and pay it off within 2 or so months so I then have a decent computer for work related things and personal use. It's not debt worrying me as I have a second job which I could work more hours if needed. I don't have any other outgoings I just don't want to sink my whole wage into a computer in one go.

Tuxxey · 5 Mar 2015 at 22:21

I have no idea where you got your 29/29.9 figures from.. Recently I bought a monitor from ****** and then ended up deciding I wanted another two, which would have cost around £220 for the pair, on finance for 12 months for £250 which is just a little over £20/per month which I repay via direct debit. The only fee I had to pay before hand was £1 to verify the bank account I was setting up the agreement with had money in. I've been paying £20/per month for a few months and it worked out much better thn paying the full £220 upfront.

I can at any time pay the remaining amount of debt (and save some pennies), your right it is an easy option. To be honest I'm planning on paying the monitors off and ordering some other goodies soon.

adam98150 · 5 Mar 2015 at 22:23

As the first poster said, it's not worth it. You don't know where you're going to be (financially) in 6 - 12 months time.

butterchurch · 5 Mar 2015 at 22:23

Stoner81 said:
This pretty much sums it up.

If you really are not sure then my advices is don't go ahead with it because by then it will be too late and that is not a pleasant road to go down at all.

Stoner81.

I've looked through it quite a lot and it seems viable for me as I don't want to get rid of my whole wage in one go, I'd rather get it and pay it off within two months when I then can afford to use a whole months paycheck.

Agreed it's very sceptical as who knows what might happen with debt etc but I'm confident that in two months time I can pay it off. I just don't want to use a whole months paycheck in one go when I need a computer and money.

adam98150 · 5 Mar 2015 at 22:25

butterchurch said:
I've looked through it quite a lot and it seems viable for me as I don't want to get rid of my whole wage in one go, I'd rather get it and pay it off within two months when I then can afford to use a whole months paycheck.

Agreed it's very sceptical as who knows what might happen with debt etc but I'm confident that in two months time I can pay it off. I just don't want to use a whole months paycheck in one go when I need a computer and money.

Just buy it on finance then. Looks like you've made your mind up already.

Semple · 5 Mar 2015 at 22:26

Normally these types of finance deals are abused by people who already have the money to buy said item, but would rather pay the small admin fee and keep hold of their money for 12 months/length of agreement.

Unless you have most of the money already to pay all out, you need to think about how much you'd need to put aside each month. I.e. a £1200 computer on 12 months BNPL, would mean putting aside £100 a month. If that's something easily achievable by you, then sure go for it. But if you know there's several months where you'd struggle to put that £100 aside, then this probably will not end well.

monkentage · 5 Mar 2015 at 22:27

How about something like this? I think Barclays have a similar one.

You can pay it back when you can be bothered, not including the minimum payment.

butterchurch · 5 Mar 2015 at 22:27

Tuxxey said:
I have no idea where you got your 29/29.9 figures from.. Recently I bought a monitor from ****** and then ended up deciding I wanted another two, which would have cost around £220 for the pair, on finance for 12 months for £250 which is just a little over £20/per month which I repay via direct debit. The only fee I had to pay before hand was £1 to verify the bank account I was setting up the agreement with had money in. I've been paying £20/per month for a few months and it worked out much better thn paying the full £220 upfront.

I can at any time pay the remaining amount of debt (and save some pennies), your right it is an easy option. To be honest I'm planning on paying the monitors off and ordering some other goodies soon.

Ahh sorry what I was on about with the "buy now pay later" situation was that you get 12 months interest free and you only have to pay back the price of the item.

In my case it'll be £700 for a computer - £70 deposit so I'll have £630 to pay in 12 months without having to pay interest. If I pay off that £630 before the 12 months period ends I only get charged a £29 admin fee.

The pay monthly situation is a 29.9 interest on the items you buy, it depends on what period you choose, I think the lowest one is 16.9% or something.

For me, knowing I'll be able to pay it off in two months is fine I just didn't want to use my whole paycheck in one go that's all. It's not that I can't afford it because I can it's just I don't want to have no money left for a whole month if I use it all.

butterchurch · 5 Mar 2015 at 22:29

Semple said:
Normally these types of finance deals are abused by people who already have the money to buy said item, but would rather pay the small admin fee and keep hold of their money for 12 months/length of agreement.

Unless you have most of the money already to pay all out, you need to think about how much you'd need to put aside each month. I.e. a £1200 computer on 12 months BNPL, would mean putting aside £100 a month. If that's something easily achievable by you, then sure go for it. But if you know there's several months where you'd struggle to put that £100 aside, then this probably will not end well.

I have the money that's what I mean, the wage I'm on means that I have no issue paying it back I just don't want to say spend £700 of my money in one payment. I'd rather just spread the £700 over 2-3months and deal with a £29 admin fee to finish it off.

For me it's more about having money left aside incase something comes up, fuel, food, car etc.

FL630 · 5 Mar 2015 at 22:30

You seem to have made up your mind and just signed up to tell us this. Take it from my experience, be patient, save some cash and buy it.

I've purchased on finance before and I would go this route long before the buy now pay later. Why do you think big stores like furniture and home places give you this deal? Because if you don't have the money now, you wont have it in 2 months, and sure as hell they will make good money off of you.

butterchurch · 5 Mar 2015 at 22:33

FL630 said:
You seem to have made up your mind and just signed up to tell us this. Take it from my experience, be patient, save some cash and buy it.

I've purchased on finance before and I would go this route long before the buy now pay later. Why do you think big stores like furniture and home places give you this deal? Because if you don't have the money now, you wont have it in 2 months, and sure as hell they will make good money off of you.

I posted this to find out if anyone else had done it and if it's worth doing just the questions asked matched my situation.

I wanted to see if anyone else had been down the route of buying and then paying later and if they encountered any issues as like many people said that sort of thing / finance can be risky.

lee32uk · 5 Mar 2015 at 22:46

I have bought a couple of things on buy now pay later. The last one I did was about 5 years ago when I bought a Mountain Bike from Evans Cycles.

As long as you pay the full amount off before the settlement date then you are fine. I didn't encounter any problems.

deFiniLoGy · 5 Mar 2015 at 23:17

Your best bet will be calling them directly tbh.

But looking at your situation, will you also consider buying the essentials first and then add the luxurious items later?

E.g. Buy the bare essentials first, and then add in a VGA card later on.

butterchurch · 5 Mar 2015 at 23:27

deFiniLoGy said:
Your best bet will be calling them directly tbh.

But looking at your situation, will you also consider buying the essentials first and then add the luxurious items later?

E.g. Buy the bare essentials first, and then add in a VGA card later on.

Considering it yes, as I'm looking to buy everything for a system so monitors, mice, keyboard, headset I'm considering buying the a mouse, keyboard, mouse pad and headset up front as together it's around £200-250 which is fine and then the more expensive items maybe use the buy now pay later. Atleast then it takes £200 ish off the price that if it comes to it, I have to pay.

Thanks for all your advice guys, really helped me make my mind up. Cheers

!bluetonic! · 6 Mar 2015 at 07:35

The other option is to buy a component a month, looking on MM and other B grade items to save monies.

Divinious · 6 Mar 2015 at 10:43

I've done this previously myself & had planned to pay off in a lump sum at the end of the term yet something came along out of the blue & low and behold I ended up paying way over the top afterwards, so unless you have Iron willpower and are 100% sure nothing will happen to your job (if you are 100% you are a lucky man in this finacial climate) I'd avoid doing it. You could have course setup another account & setup a standing order so that each month the money is transfered over automatically, but if you can't do that don't do it.