Online shopping has never been easier and more convenient. Because of the lockdown and the tempting sales from Shopee and Lazada, you can’t help but browse.
Imagine this: you need a tablet or a printer for your kids’ online distance learning class. The price tag might stop you from getting one but because Lazada partnered with merchants like BillEase, you can now pay for that item through the Buy Now, Pay Later or BNPL scheme.
The best part is you can still avail of this service even without a credit card.
In other countries, BNPL payment option gave opportunities to company owners to earn despite the pandemic. In fact, it gives shoppers an economic power despite the challenging times. This is because the Buy Now, Pay Later scheme made items affordable and attainable, especially for ordinary Filipinos.
Still, don’t get too excited. Buy Now, Pay Later allows you to shop and pay conveniently while sellers record their sales. Yes, it helps small businesses but if you’re not too careful, then you might end up swimming in debt.
To avoid that, here are tips on how you can use BNPL scheme responsibly:
Tip No. 1: Know What You Need
Read: need.
As tempting as the BNPL sounds, this is not an excuse to splurge on things you want and worry about payment later. Focus on what you need first and save up for those wants later. Consider future use and the life span of the item you wish to purchase.
At this point, prioritizing your needs is a must.
Tip No. 2: Buy What You Can Afford
At this point, needs must always come first with your wants. Before you add to cart, ask yourself if you can also afford it, too.
BNPL scheme allows you to conveniently purchase items that are beyond your budget. The question now is can you manage the monthly payments? Can you afford to pay those fees for the next six months? If you can’t, then perhaps delaying the purchase for a while is a wiser decision.
Always be realistic to avoid jeopardizing your financial standing. Make sure to set a strict budget, too.
Tip No. 3: Do Not Stretch Your Term
BillEase allows you to borrow for a maximum of 12 months. Does this mean you should always maximize your loan term? Not necessarily.
Longer term means paying more interest. If you can squeeze the payments to shorter term, say three months, then don’t stretch.
Other lenders will prefer this but for BillEase, we value good paying habits more than anything.
Tip No. 4: Remember Your Loan Details
This is a must. One of the pitfalls of Buy Now, Pay Later scheme is that customers are unable to stay on top of their multiple payments. As a result, they will either miss a payment or become short in cash for other equally important expenses.
That being said, make it a point to remember your loan details. Write it down or set an alarm on your phone to remind you of your due dates.
When you apply with BillEase, a copy of the Loan Agreement as well as Disclosure Statement will be sent to you indicating the terms, amount, and schedule of monthly repayments. Print or write it so you won’t forget.
Tip No. 5: Always Pay On Time
This is also a must. BillEase stresses the importance of good payment habits because this is also the basis of whether or not your credit limit will be increased.
Therefore, pay on time and pay according to what is due. This will prevent you from incurring penalty charges and keep your account up to date.
Being financially-responsible is lauded by lenders, including BillEase. Through this BNPL scheme, lenders could tell how you are as a borrower, which could greatly affect financial transactions in the future. Keep these tips in mind to protect your credit standing.