Smart spending sounds like an oxymoron – but it’s really about saving on your big expenses and making better buying decisions all round.
Buy Now Pay Later (BNPL) services, like Gimmie, have transformed how we shop, offering flexibility, convenience and better payment options for consumers.
What is BNPL?
BNPL services allows consumers to pay for a product by instalments over time instead of paying the full retail amount upfront, meaning you can get the things you need now and pay it off later.
The BNPL movement has shaken up the retail industry by offering an alternative to traditional finance options and credit approval processes. Australia now has around 22 different BNPL providers – but not all are created equal.
It’s easy to get trapped by hidden fees and interest and end up spending more in the long run. It’s important to know that with BNPL services, you’re actually using credit and it can be easy to overextend and overspend.
Late repayments can appear on your credit report and affect your ability to apply for loans or borrow money down the track.
To ensure you’re making smarter spending choices, here’s what you should know before using a BNPL service:
Smart spending with BNPL
- Stick to a limit: Don’t have more than one BNPL account so you don’t lose track of repayments.
- Budget for BNPL: Just like bills, these repayments are an expense, so make sure you factor them into your budget
- Think before you link: It’s a good idea to link your BNPL payments to your bank account or debit card. If you link your repayments to your credit card, you might get caught in a trap of paying off credit with credit and run the risk of being stung with high interest or fees.
Remember – it’s smarter to spend your own money and stay within your budget.
Do your research first
If you want to use a BNPL service, do your homework to understand what you’re signing up for before you commit.
Most of all, be aware of what you’ll need to pay back, including any interest and account-keeping or late fees. Fees charged differ between BNPL providers and can add up quickly.
Why BNPL is how we buy now
BNPL has changed the way we shop forever, giving people the flexibility to get what they want, how and when they want.
Gimmie is one of my favourite BNPL providers because it does things differently, offering simpler, more flexible payment options, and the choice to pay in instalments that suit your lifestyle.
Most BNPL services are aimed at lower-value transactions that are paid off across a few short weeks, whereas Gimmie is specifically designed for life’s big buys with payments over a longer period and no interest or hidden fees. Ever.
As a Credit Authorised and responsible lender, Gimmie also ensures you don’t overextend with your financial commitments and that the contract is right for you.
For more financial education tips, head to On the Money with Mark Bouris
