Buy Now, Pay Later. Are BNPL services worth using, and what are the possible repercussions? Learn how to use it right in order to maximize your cashflow, and what to avoid so that you don't end up busting your budget or running into late fees. Traditionally, you could either pay for a purchase in full or via monthly instalments. Payments via instalments are not new - the banks and credit cards companies have been offering this for decades, earning as they charge you late fees and hefty interest rates (~25% p.a. on average) for missing payments.

How does BNPL work?

In contrast, BNPL players operate in that space in between where they offer short-term payment plans that allow consumers to make a purchase and split the cost by paying for it in several instalments over time. If you've already been disciplined in repaying the instalment plans offered by your credit card issuer,...