There are a number of online sites and buy now pay later catalogues that offer credit. These sites mean that you can spread the cost of your purchases over a number of weeks; at ellos.co.uk for example you can spread the cost of you shopping with monthly repayments.
You usually have to pay interest for the payments (similar to credit cards) although some firms do offer interest free periods, so it is important to fully read the terms and conditions. However, while monthly or weekly payments are still convenient it is still a form of credit so it is important to consider all the pros and cons.
Spreading the cost of payments over a period of time can be very convenient for some people, especially if it is a big purchase. If, for example, your washing machine breaks down, or you need a new laptop that is quite a big purchase, many people don’t have the spare cash for it, so spreading the cost can be a big help. It can also help with budgeting for events like Christmas or getting a new summer holiday wardrobe. It can also help with budgeting to know how much you have to pay each month and to spread the costs.
You can often get special discounts just for being a member of the company so you can save a bit of money there.
You often pay more money for your goods by spreading the costs, as online sites usually charge you interest for the privilege of spreading the cost of payments. Therefore, it is really important that you factor in the cost of this interest when shopping as you may be able to find the product cheaper elsewhere. So, if you can afford to pay outright for your goods, you may find it works out cheaper.
Some sites also charge a high APR so, before signing up to a payment plan, make sure that you have read all the terms and conditions and know exactly what you will be charged.
Also the credit account will appear on your credit file, so if you miss any payments or don’t want it to be on your credit file it may not be the best option for you.