“I can’t afford to pay for something right now, but I need it — what should I do?”
Have you ever found yourself facing this dilemma? You know you need to buy items for school or work or your home — but you just don’t have the cash up-front.
We know how frustrating that can be!
What’s more, you’ve probably been told that if you can’t pay for it in cash, you can’t afford it and therefore shouldn’t buy it.
While that is generally true, it’s not always practical advice when you, or someone you love, needs something that neither your paycheck nor savings can cover.
Although there are many finance options available to you, some of these may come with nasty hidden surprises. But don’t fret! This article will help you find the safer and smarter option to get what you want in a better, fairer way.
‘Rent To Own’ or ‘Rent To Buy’
These purchasing arrangements allow you to rent items, such as appliances, electronics, computers, or furniture and pay them off over a period of time. At the end of your rental agreement, you may have the option to buy your appliance at an additional cost, however, this is never guaranteed. This means you end up paying far more for a product you may never actually own.
If your rental agreement allows you to own your goods at the end of the rental term, the maximum total price you can pay is capped by law. But many rental companies get around that by using complicated schemes to let you own the goods, whilst still charging you much more than what we think is fair.
Rent to Own” is mostly used as “last resort finance” by people who cannot afford the product upfront, and don’t have the option of a credit card or a “Buy Now, Pay Later” plan as they need more time to pay their purchase back.
What to look out for:
- Locks you into high payments over 3–5 years
- Total rent payments could be 3 to 5 times the actual purchase price
- Expensive to exit early
- No guarantee of owning the product at the end of the agreement
- Terms and conditions can be complicated and confusing.
Credit Cards
Credit cards are the common go-to for people who need to buy something on the spot without the cash because they’re easy to use if you can get one.
If you’re not careful, with credit card interest rates and hidden fees, you may end up paying significantly more than the original price in the long run.
Although it may feel like you’ve already paid for the item you want, remember that using your credit card is similar to taking out a loan — this borrowed amount is something you’ll need to pay routinely every month.
The great credit card trap – paying just the minimum monthly payment – means you may be paying for many years to come and incurring huge interest costs and additional fees.
What to look out for:
- Minimum repayments can trap you into long-term, high interest
- Lack of a fixed payment schedule makes it harder to pay off
- Hidden fees such as establishment fees, account keeping fees, interest rate penalty rates, late payment fees, payment processing fees
- Credit cards can encourage impulse spending
- It may cause you to take on more debt than you can afford, which can badly affect your credit history
Buy Now, Pay Later
Buy Now, Pay Later (BNPL) is another finance option that allows you to make purchases by stretching out payments in equal instalments; weekly, fortnightly, or monthly. BNPL options are commonly available upon checkout online or in-store.
First-time customers will need to provide payment details to set up an account. You can then log in to your account to edit your payment schedule and make payments before the due date. If not, these instalments will automatically be deducted from your debit or credit card every fortnight.
Most BNPL services do not have additional charges at the time of purchase, but you may incur late fees if you are unable to make your repayments in time.
What to look out for with other providers:
- High payments over a few short weeks
- Default consequences and debt spiral if you can’t make the payments
- The bigger the purchase, the bigger the risk
- Not regulated by the National Credit Code
Interest-Free Schemes
Many major department stores offer interest-free payment schemes, which allow you to take items home before you pay for them. Offers like “50 months interest-free” sound almost too good to be true, right? And, they probably are.
These interest-free schemes are usually offered by department stores on a promotional basis, and can range from six to fifty months ” interest-free”. However, any outstanding balance after the interest-free period can be subject to high-interest rates.
Most of these offers are actually credit card products and not what they seem. You are usually charged establishment fees, monthly account keeping fees and penalty interest if you don’t make your payments in full or on time. Like any other credit card, you can fall into the trap of just paying the minimum monthly payment and end up paying high-interest charges.
As with all other financing options, you need to be careful about signing up for interest-free schemes because these store cards are another form of credit and failing to make timely payments can be costly and lead you to further debt.
What to look out for:
- It may sound easy, but it’s really a credit or store card that lets you spend more than you need
- High-interest rates after the interest-free period
- Hidden existing fees may apply such as establishment and account fees
- Minimum repayments can trap you past the interest-free period
- Often can’t pay more or payout early
Introducing Gimmie, Your Alternative Finance Option
If you’re not satisfied with the above finance options, Gimmie may be just what you need. We understand that the alternative finance options out there have their downside, so we’ve found a better and fairer way for you to get what you want.
With Gimmie, you get to own it now and pay later. Pick the products you need and enjoy the flexibility of paying in instalments over 1 or 2 years. With our Gimmie 90DayPay, you then have the option of paying out in full within 90 days from your purchase and all you’ll pay is the original cash price. No interest, no early termination fees within 90 days.
To get started with Gimmie, all you need to do is:
- Pick your product. Choose from a range of the latest furniture, appliances, TV, and entertainment, computers and tech.
- Choose your term. Choose how long you want to pay back your purchase, in 1 or 2 years, whatever suits your budget.
- Get approved. Getting approval is easy. Apply online for a Gimmie plan and get approved fast.
- Get your stuff. When you’re approved, we’ll ship your new stuff, and you can start enjoying it straight away.
- Pay it off. Weekly, fortnightly, or monthly payments until it’s paid off. Simple.
And don’t forget, with Gimmie’s 90DayPay option, you can always pay out your Gimmie plan within 90 days and only ever pay the original cash price.
Why Gimmie Is the Better Way to Pay for Something You Need But Can’t Afford Upfront
Why worry about high payment fees in shorter payment periods, dodgy fine print, hidden fees and charges, restrictive contracts, and confusing terms and conditions when Gimmie can give you a better, fairer way to get what you want?
Just because you can’t afford to pay for an item now doesn’t mean you have to settle for less and bear the weight of other finance options that we reckon aren’t good enough.
Gimmie gives you a safer and smarter way to have what you need today with greater flexibility to control how and when you pay it off.
Simple. Clear. Easy. Gimmie.
The better way to pay for something you can’t afford. Find out more with Gimmie.
