Think Twice Before Using ‘Buy Now, Pay Later,’ Financial Expert Advises

As the holiday season kicks into gear, financial institutions are enticing consumers with “buy now, pay later” (BNPL) schemes. While these offers might seem like an easy way to shop without upfront payments, financial expert Vince Rapisura urges caution before diving in.

The Pitfalls of BNPL

Rapisura warns that BNPL schemes may encourage unnecessary spending and reliance on debt.

“Pinipilit ka niyang bilhin mo na ngayon yung bagay na pwede mo naman ipagpaliban pa,” he explained in a report on Saksi. Even with zero percent interest, these transactions still count as debt and could lead to unhealthy financial habits.

Smart Use of Credit

Rapisura recommends using a credit card only if you can fully pay your balance by the due date. For BNPL schemes, he suggests looking for deals with no interest and, ideally, discounts to maximize value.

Tips to Avoid Overspending

To help avoid financial pitfalls this holiday season, Rapisura shared practical advice:

1. Avoid borrowing money for non-essential shopping.
2. Resist the bandwagon effect of buying trendy items.
3. Set a budget and stick to it.

He also emphasized a key financial principle: “The credit limit on your credit card is not your money. Your real money is what you’ve worked hard for and already have in hand.”

By practicing mindful spending and steering clear of unnecessary debt, consumers can enjoy the holidays without compromising their financial health.