Shop with Paylater Without the Stress: Here Are Smart Tips!




In today’s digital era, buy now, pay later (BNPL) systems, often referred to as paylater, have become a popular payment method, especially among online shopping enthusiasts. With paylater, you can buy the items you want now and pay for them later—it’s super convenient, right?

However, this convenience can quickly become overwhelming if not managed wisely, making it essential to have a solid strategy to avoid financial issues. Here are some smart tips for using paylater safely and wisely!

What is Paylater and Why is it So Popular?

First, what exactly is paylater? According to Sekar Putih Djarot, spokesperson for the Financial Services Authority (OJK), paylater allows you to delay payment or purchase on credit, which must then be repaid at a later date.

Similar to credit cards, this method has become highly popular among young people, as it offers exciting promotions and is easy and quick to set up. No wonder usage has increased by 89.02% year-on-year through August 2024, reaching IDR 7.99 trillion, according to OJK data. Most users are Millennials (43.9%) and Gen Z (26.5%).

Pros and Cons of Paylater

Like any payment method, paylater comes with both advantages and disadvantages that you should consider:

Pros

  1. Convenient and Easy: Application processes are often quicker than conventional credit cards.
  2. Exciting Promotions: Many e-commerce and digital financial services offer discounts or cashback for paylater users.
  3. No Upfront Payment Needed: You can purchase the items you want without having to pay right away.

Cons

  1. Interest and Extra Fees: Without disciplined payment, interest or late fees can accumulate.
  2. Risk of Debt Accumulation: Without good control, paylater can encourage overspending due to its easy accessibility.
  3. Impact on Credit Score: Late payments can negatively affect your credit score, potentially complicating future loans.

Tips for Using Paylater Wisely

To ensure that using paylater doesn’t become a financial burden, here are some wise tips:

Use It Only for Essentials

Although paylater offers convenience, try to use it only for important items or needs. Avoid using it for impulsive purchases, like the latest gadgets or unnecessary shopping sprees.

Understand the Terms and Conditions

Each paylater service comes with its own terms, including interest rates, administrative fees, and payment deadlines. Be sure to read these carefully to avoid any unexpected costs.

Keep Track of Payment Deadlines

Staying disciplined about your payment due dates is essential to avoid late fees and interest charges. Many paylater services offer automatic reminders via the app or through WhatsApp and SMS. Make use of these features to ensure you pay on time.

Choose Platforms with Attractive Promos

One of the major perks of paylater is the various promotions it offers. Taking advantage of such deals allows you to save money when shopping online or booking accommodation.

Stick to a Planned Shopping Budget

Before using paylater, set a monthly shopping budget that matches your financial capacity. Set spending limits to avoid overspending. Think of paylater as a debt that needs to be repaid quickly, not extra funds for splurging.

Pay On Time to Avoid Interest

Don’t delay your payments! Aim to settle your bill before the due date to avoid any additional interest. If possible, pay off your balance early so you can continue using paylater without financial strain.

Conclusion

Paylater can be a practical solution for shopping and everyday transactions, as long as it’s used wisely. Understanding its pros and cons, along with following these tips, will help you avoid financial stress.

Use paylater only for essential needs, make the most of promotions, and pay on time to keep your spending comfortable. Remember, financial control is the key to maintaining long-term stability!