Buy now, regret later? RACQ issues spending warning
“Buy now, pay later services like AfterPay and Zip have soared in popularity in recent years with almost a third of Queenslanders surveyed telling us they were likely to use one of these options in the future,” Ms Ross said.
“Another trend we’ve uncovered is almost 10 percent of those surveyed said they’d used a pay day loan, which is basically short-term credit to help get you through until your next pay cheque. Concerningly, almost 60 percent of those using this product said they struggled to pay it back.”
Ms Ross said with any financial decision it was crucial to do research and understand the fine print before committing.
“Some buy now, pay later options have no interest fees and no charges unless you miss a repayment, but if you do miss one you could be slugged with a huge fee,” she said.
“It’s also important to know when the automatic payments will be taken. Some users have been stung with overdraft fees from their bank when the money was deducted and they didn’t have enough in their account.
“The best way to avoid getting into trouble is to use your own cash or savings whenever possible. If you don’t have the money, before committing to a purchase using buy now, pay later ask yourself: ‘if I can’t afford to pay for it now, will I be able to pay for it later?’”
Ms Ross said before Queenslanders used BNPL or credit options, take time to assess the product and your budget.
“Look at how much you earn, where your money is going and how much it’s essential spending. Then consider an online budget planner, like RACQ’s, to keep track of your finances.”
The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.
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The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the Product Disclosure Statement (PDS) and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.
Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.
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RACQ Operations Pty Ltd (ABN 80 009 663 414 AR 000234978) and Members Travel Group Pty Ltd (ABN 45 144 538 803 AR 000432492) are acting as an Authorised Representative of the issuer of the insurance, Tokio Marine & Nichido Fire Insurance Co., Ltd. (ABN 80 000 438 291 AFSL 246 548). Any advice set out above is general in nature only, and does not take into account your objectives, financial situation or needs. Before purchasing any travel products, please consider the RACQ Travel Insurance Product Disclosure Statement (PDS) and the Target Market Determinations (TMDs) that apply to these products. Whilst the PDS outlines the Terms and Conditions of these products, the TMDs outline the intended class of customers that comprise the target market for these travel products. This will allow you to consider which products best suit your objectives, financial situation and needs and consider the products appropriateness to your personal circumstances. TMDs also outline matters involving the distribution and the review of these products. The PDS, Supplementary PDS and TMDs for each travel product can be found here.