the consumer is juggling multiple BNPL plans on top of other debts. On the other hand, this system which involve involves minimal credit checks do not always offer a clear picture of buy now, pay later plans you may hold with different companies, and so it is possible to bite off more than you can chew.
While late fees apply on an unpaid BNPL balance in most cases, it could potentially hurt your credit history. On other hand, you may be barred from using the service temporarily or permanently as a result.
There are several options which a consumer can explore in order to avoid these consequences. Firstly, it is always important to revisit your budget, to understand where the money is going, and to prioritise essentials like food, housing utilities and medicine. “Do you need all of those subscription services you have now? Is there a way to get a cheaper cell phone plan or a cheaper cable plan or shop for cheaper insurance?” Katie Bossler, quality assurance specialist at GreenPath, said.
Another recommendation is to part ways with the item purchased. The customer may be able to return the item to the merchant for reimbursement, or if the merchant would not accept the return, the customer should consider reselling the product in order to recoup some of the money. Experts also advise customers to consider either changing their due date or payment method and to do so before missing a payment. While each company has different policies in this regard, Bossler recommends aligning the due date with the pay check or the period which offers the customer most breathing room.
Consolidating other debts is another key recommendation, and since consolidation may not even be permitted for BNPL, the customer may be able to consolidate high-interest debts elsewhere can free up money. Getting a side gig could also help a customer juggling multiple buy now, pay later plans to get their finances in order. Taking on additional hours at work or getting a side job like delivery service or driving for a rideshare may offer a way to pay off your BNPL debt more quickly.
