David's take on 'buy now pay later' services...
Recently I saw someone on social media arguing that there is no difference between Lay-buy and one of the 'Pay After you take it home' products that are very popular at the moment. They were clearly convinced that there is no difference between the two because as they saw it, you pay in installments over a short period of time and once the payments are made you own the item. They were defending their decision to be one of their customers. However, they were overlooking the 'human nature factor'.
Meet Anne... Anne plans to make every effort to quickly pay off the lay-by for something she really wants. Once she gets it, it doesn't take long for the novelty to wear off and desire for some other bright shiny object to take it's place. Anne easily falls into the trap of taking home multiple things she can't afford at the moment, by convincing herself she will pay for everything later. Anne has ended up in all sorts of money trouble with penalty charges adding up very quickly. Here's the difference... lay-buy doesn't cause this. If Anne takes on more lay-buys than she can comfortably afford, she might end up losing some of her deposits if a lay-by expires before she completes the payments. Thankfully though, she can't end up with snowballing charges and compounding debt as a result. Beware of the trap of the 'Pay After you take it home'. In fact, the same applies to any form of credit really. For example, if your car breaks down and needs fixing, it is easy to justify using credit (someone else's expensive money) to fix the problem because, let's face it, you need your car for your daily life. However, once the break-down has been fixed using credit money and you can get back to your normal 'comfort zone' routine, it's easy to forget about the fact that you did not solve the problem, you just moved it sideways. Now you have a money problem instead of a car problem. There is always more than one way to solve a problem, and throwing money at it is just one of them. It's usually the most expensive way as well! However there is just about always another way... If you have fallen into this debt trap it's time, to cut up the plastic and put a 'catch-up' spending plan into action. If you need help with that, simply click the button below. We can help you take control and bring your money stress levels right back down. You'll never regret it!
Have a wonderful week,
Program Creator for My Income Organiser®