“Should I use Buy Now, Pay Later if I can’t afford the Christmas shopping?”

Q I am planning to start my Christmas shopping soon and I don’t have much money to spend this year due to the cost of living. Some of my friends have said that instead of paying for gifts upfront, they will use a form of credit that will spread payments for their Christmas shopping over a longer period of time. That sounds tempting to me. What type of credit are they referring to and how does it work?

Mary, Co Limerick

A First, it would be a good idea to make a list of what you plan to buy for Christmas and what each item costs. Then set a realistic budget for how much you can afford. This also helps you decide if you need to change your shopping list to ensure you’re staying on budget.

Ideally, use your savings for your Christmas shopping. This costs you no interest and you can build up your savings again in the new year. However, if that is not an option, it is important to determine what type of loan best suits your needs and offers you the best value. Several borrowing options are available, including a personal loan from your bank or credit union, using an overdraft facility, or using a credit card. The interest rates and fees charged for these different loan options vary, so take a look to see which option is the best value for you. The CCPC has a comparison tool on their website that you can use to compare the cost of these products.

It sounds like the lending option your friends are discussing is Buy Now Pay Later (BNPL), which allows consumers to buy goods or services and spread the cost over several months or years, rather than all at once upfront to count. There are a number of different providers in Ireland, including relatively new phone app providers, and fees and charges vary from provider to provider and depend on how you make your repayments.

While short-term installments can be interest-free, longer-term arrangements and defaults can result in fees and interest charges. Missed payments can affect your credit score, which may affect your ability to secure credit or credit in the future. Also keep in mind that if you have an outstanding debt with a pay-now-later provider, the provider may pass it on to a collection agency, which would then pursue you to repay the debt.

While the Buy It Now Later credit might seem like a simple solution in the short term, if you’re looking to buy multiple Christmas gifts, you need to consider the following factors: If the vendor charges late fees, what are the fees? ? Can you track how much you owe the provider? Can you track your repayment dates?

“How can I avoid that a new car demands a higher price after delivery?”

Q I want to buy a new car but I’m cautious after hearing a story from a friend recently – he put down a deposit on a car and when it finally arrived the dealer told him the price had increased significantly due to increased costs had risen . He felt he had no choice but to pay. What can I do to avoid getting caught like this?

Padraig, Co. Monaghan

A When you buy a car from a dealer or workshop, you are protected by consumer rights. For example, they must provide you with certain information before you make a purchase. This includes the total price of the car including taxes. If the price cannot reasonably be calculated in advance, it must be stated how the price will be calculated. Information on any additional costs – e.g. B. Shipping Costs – must be set out in the Terms and Conditions and agreed with you prior to any purchase.

We recommend that you contact your dealer or workshop and ask the following questions: will the car be priced up before you receive it and if so, on what basis? It is important that you understand how future cost increases are calculated and applied. Can you cancel the purchase and get your deposit back if the car’s price goes up beyond what you can or want to pay?

Buying a car is always a costly decision and consumer inquiries about their post-purchase rights are among the top reasons why consumers contact our helpline. Make sure you’re fully prepared before any purchase by going to the car hub on Ccpc.ie.

https://www.independent.ie/business/personal-finance/should-i-use-buy-now-pay-later-if-i-cant-afford-christmas-shopping-42177038.html “Should I use Buy Now, Pay Later if I can’t afford the Christmas shopping?”

Fry Electronics Team

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