Should I use Buy Now Pay Later and Flexible Payment Schemes? | Money Hotline #5

Today we answer a question from Tanya. She has been wondering about Buy Now, Pay Later schemes as well as the new flex schemes offered by banks. Tanya would like to know how these schemes work and if they do impact your credit score?Today on The Wallet: 1/ In 2020 the use of Buy Now, Pay Later services soared to £2.7bn transactions and it continues to be popular with retailers and online platforms. While it’s appealing to shop and not be charged instantly, Buy Now, Pay Later is still a form of credit, so we look at all the pros and cons of using these services. 2/ Buy Now, Pay Later schemes can be controversial. Research shows that consumers are tempted to buy more than they budgeted for when using these schemes, and may not be aware of the terms and conditions they are entering into. That’s why I have three prompts for you to ask yourself before you make a purchase using Buy Now, Pay Later. 3/ We will also look at what credit checks take place when you enter into a BNPL agreement, as well as how they impact your credit score. Resources:Book: Mind Over Money: The Psychology of Money and How To Use It Better by Claudia HammondPodcast: How To Save Money For The Things You Want With Urenna Okonkw‪o‬Our podcast partners PensionBee are also offering you a £25 pension contribution (£20, plus £5 in tax relief) when you sign up. To claim the offer, follow this link: https://www.pensionbee.com/vestpod. Capital at risk.  I’m Emilie Bellet, the founder of Vestpod (https://www.vestpod.com/) and author of You’re Not Broke, You’re Pre-Rich. Join us on Instagram @vestpod (https://www.instagram.com/vestpod/) and Facebook (https://www.facebook.com/groups/vestpod).  You can submit a proud money moment, a question or a comment on a previous episode. You just need headphones and a mic at the ready and follow this link (https://telb.ee/abrzt) or email me the recording at [email protected].* We are not certified financial advisers, information shared in this podcast is for educational purposes & does not constitute financial advice. Invest what you can afford only and for the long term.* Hosted on Acast. See acast.com/privacy for more information.