As the business market becomes more competitive, companies are trying their best to introduce more customer-friendly services. By providing convenience, they try to attract more users and make them loyal. One such service includes buy-now-pay-later services.
Looking at the vast range of benefits provided, there must be some cons as well. Continue reading this blog to know if the buy now pay later services are really convenient or just a debt trap.
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What are the Buy Now, Pay Later Services?
Buy now, pay later services refer to a group of customer services provided by multiple companies and firms. These services allow customers to buy a particular product or service without paying for it immediately. Let’s understand this term with an easy example.
Let’s assume that you are running out of groceries because it is the end of the month. But the end of the month also means that your pocket is probably empty. In this case, you would use the buy now, pay later service to ensure supplies in your house. You’ll buy your groceries and pay later when the salary arrives.
How is the Buy Now, Pay Later Service Convenient?
Convenience is the key to attracting customers. Since so many people are using these services, it means that they have some great benefits. Let’s look into some ways by which the buy now, pay later services prove to be beneficial:
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Reduce Financial Burden
Buy now, pay later services are designed to reduce the financial burden on customers. In times of need, when necessary things can’t be afforded, it makes the situation a little more feasible.
Fulfillment of Needs on Time
This customer service offers multiple credit alternatives. It assures that the customer’s needs are not compromised in any condition. Whether it is an online shopping platform or a physical store, the versatile payment methods make it available for all.
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Easy Accessibility
Another important advantage of buy now, pay later services is their easy accessibility to all. With various payment options and trouble-free availability, they have become one of the best-rated customer services.
How is the Buy Now, Pay Later Service a Debt Trap?
Let’s not forget there are always two sides of the same coin. Therefore, the darker side of this service is described below:
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Disturbed Financial Management
Factors influencing buy now, pay later services, such as interest charges, the risk of overspending, penalties, etc., often lead to disturbed financial management, which can be a disastrous calamity.
Spoiled Shopping Habits
The buy now, pay later services have the potential to temporarily relieve financial worries. They affect the customer’s psychology in such a way that he starts to expand his needs.
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This phenomenon leads to spoiled shopping habits in many individuals, leading to overspending. They think that since it is not going to be paid for right away, they can purchase whatever they want, even if it is not required at the moment.
Missing Deadlines
Suppose you have done some shopping via the buy now, pay later services. Whatever purchase you have made, its cost will be paid back by you until a particular time. If the deadlines for money back are missed or forgotten in the hustle, penalties can be applied. These penalties include late fees and additional charges. In short, you will end up paying more rather than saving.
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Increased Debt
As this service oppose the traditional method of shopping, it comes with certain risks as well. One of those risks is the increased amount of unmanageable debt. People often take the convenience too lightly, and at the end of the day, they end up adding a pile of debt under their name.
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Conclusion
With the evolution of various e-commerce trends, the use of buy now, pay later services has gained popularity. In the debate of convenience vs. debt trap, we have concluded that this friendly customer service has huge benefits that have transformed recent online shopping trends. However, misuse and careless attitudes can always lead to consequences that will be harder to manage.
FAQs
How much time do we have to pay our loan back?
It depends on the service provider company, but mostly it varies from 30-45 days.
Are there any additional service charges?
Some companies might charge service charges or interest, while others give the service for free.
Is the buy now, pay later option available for online purchases?
Yes, the buy now, pay later options are valid for most of the online purchases nowadays.