Now-a-days “Buy Now – Pay Later” Schemes are becoming very popular in India. As they allows you to “Pay Later” many thinks that it is an option to pay on your convenience after few days/months.
But do you really think about the “Hidden Facts” behind these schemes- The “Real Fact” is that it is an alternative to credit card where in credit cards you have to pay the due amount “Manually” where in “Buy Now – Pay Later” Schemes -“The due amount would be automatically debited from your Bank a/c“.
Generally e-commerce sites and banks are tied-up under this scheme and allows you to repay within 15-45 days of the purchase date.
If you are unable to maintain sufficient balance in your bank a/c, high “Penalty”(Interest)Charges would be levied.
You can opt for EMI Facility but do remember you have to pay “Compound Interest” as you are paying partial amount on month-on-month basis.
Generally “Buy Now – Pay Later” schemes are a “Trick” to collect interest-on-interest from you.
Don’t get attracted by these offers thinking that you will pay on “Free” Later. This is also one type of “Credit” given to you
You have to pay “interest” on the bill amount but is invisible if we don’t observe it carefully . If we check the bank statement and the payment details carefully, you will observe the difference between Original Price and the Price What You Paid.
So From Now Onwards don”t get attracted by these schemes. If you don’t have ready cash at that moment but has the capacity to pay on later, you can opt for it. Otherwise “Avoid” it in most cases.