Why “buy now, pay later” in stores is a bad idea for those of us who actively manage our finances

The financed purchases Until very recently they had been an option relegated to department stores or large firms whose products were very expensive, so that customers could space their payments to be able to purchase certain products without having to spend months saving.

While in recent times more and more shops and stores of all kinds give the possibility of financing purchases and pay them in different installments. We talk so much about electronic and technological products (which tend to have high prices) to party dresses, bags, shoes …

There is no limit, financed purchases can be for amounts from 300 euros to 3,000, thus giving more people the possibility to purchase products. But is this a way to democratize shopping and make consumption accessible to all audiences or compromise personal finances?

Because, let’s not forget, these financed purchases are, after all, debts.

Why you should be careful about the purchases you finance

You are right. When we buy with financing, more than a product, we acquire a debt, which depends on the price and the monthly amount that we put, it will be longer or shorter.

Is it worth buying this way? Well it depends on the cases. For example, if you have to renew your computer and want to buy a better quality device because you need it for your work, financing the purchase may be a good idea. if you have to make a very high outlay at once and you cannot.

But acquiring that habit to buy products that are not necessary, such as clothing, accessories or leisure products, no. Because it can generate a bad habit since makes your mind believe that “you are not spending money”, because at the end you leave the establishment without having paid anything for your purchase. In addition, by acquiring debts in different businesses, the perspective of the global debt is lost if a good control is not carried out.

That is, this type of shopping create vice, and it is not something unknown, since there are numerous cases of people who have fallen into addiction to online purchases or via credit card who have been flooded by debts that they could not face.

Therefore, if we do not want to have numerous financing payments every month that we sign like crazy, we must reflect very well when financing a purchase. Above all, ask ourselves these questions:

  1. Do I really need it or is it a whim?
  2. Is it a good long-term investment or will it last me a short time?
  3. Can I afford this monthly payment right now?
  4. Is it compatible with my monthly savings goals?

By answering these questions honestly and making numbers with our monthly budget, we will be able to know if financing a purchase is a good idea or it is only going to weigh down our personal finances.

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