What buy now, pay later schemes really mean for Kiwi young people

What buy now, pay later schemes really mean for Kiwi young people


Buy now, pay later (BNPL) payments are available to Kiwis teens from the age of 18. It means you can purchase something now, then pay for it over time, often with no interest or fees. Sounds too good to be true? Well, yes. It’s definitely a buyer beware situation.


So, what’s not to love about a delayed payment purchase offer? A few things, actually.


  1. Another form of debt

BNPL purchases can add up quickly, so there’s a risk of putting yourself in a position where you can’t cover repayments. You must remember these schemes are just another form of debt, like overdrafts or credit cards.


  1. Missed payment fees

There are many BNPL offers, so do your research on how you are required to pay back the purchase and choose the one that offers the lowest missed payment fees.


  1. Multiple schemes

Juggling more than one BNPL purchase over more than one scheme can be difficult to maintain, so only use one service.


  1. Missed payment fees

Keep track of when payments are due so that you can make your payments on time and avoid racking up missed payment fees. Read the fine print and learn what happens if you miss a payment.


  1. Credit rating

If you miss repayments, you will start accumulating fees. If you miss too many, it can affect your credit rating which could have major repercussions and make an impact on your financial future. Your credit rating is an indication of how likely you are to pay your bills on time. Banks will look at your credit rating when you apply for a home loan or credit card.


  1. Impulsive shopping

It is tempting to splurge or shop impulsively in the moment when you don’t need to pay for the items up front immediately. But be careful, you don’t want to rack up avoidable unwanted debt.


In New Zealand, buy now, pay later schemes are available to customers from the age of 18 years with debit card or credit card details and a valid New Zealand ID.

It is tempting for young Kiwis to sign up and commit to BNPL schemes with its enticing plans, but as the old adage says: nothing comes for free.



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