Buy Now Pay Later (BNPL) services can be great in that they can help you buy items you can’t necessarily afford at the time. However, when you miss a payment, you’ll pay high-interest charges and late fees. Here are some BNPL alternatives to consider.
Consider a Low APR Credit Card
You can take advantage of 0% APR intro offers from credit cards. Look for a card with that incentive — no interest for six to 12 months — and use that card to purchase the item you were going to buy with a BNPL. This way you’ll have that intro period to not worry about interest on your purchase.
Tap into Cash Rewards
If you have a credit card that offers cash back, this might be the time to use it. Think ahead and start stacking cash-back rewards with the card. Once you have enough reward points to cover the cost of the purchase, go for it. Just remember to pay off your credit card in full each month.
It can be tempting to use BNPL because of the instant gratification. However, you should really shop around for the best deal before buying anything. Look for coupons, special offers, and more.
Use Cash for Purchases
One way to avoid late fees and interest charges are to go old school: Buy the item with cash or your debit card. This requires some forethought, but avoiding debt is always a good idea. So if you have concerns about paying off a credit card, go cash or debit.