Beware: buy now pay later a lot if you miss a repayment

Buy now pay later has become a kind of lifeline for people who do not always have the cash to buy something, but it can come back to bite you if you do not pay the money back on time.

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It starts with that air fryer you have been eyeing for months that is finally on sale for R2 000 but you only have R1 000 available today. But with the Buy Now, Pay Later (BNPL) option you get the air fryer immediately and your payments only start later. No waiting. No interest. It feels like a smart workaround. But there is a catch.

Afua Darko, business head at Sanlam credit solutions, warns if you miss a payment ~ even once ~ penalty fees and default charges add up quickly. “And when an account goes into default, it can even negatively affect your credit record in some cases.