Sonya Bateson: If you can’t afford to buy now – then you probably shouldn’t

Think of buy now, pay later as the layby of the modern age.

OPINION

Ah, winter. The bane of my existence.

Every year it comes, and every year I realise how ill-prepared I am for the colder months and swear to do better next year. Then the warmth returns and those noble resolutions are forgotten.

Last year, I vowed to set a little cash aside each week and slowly build up a collection of warm long-sleeve T-shirts for layering purposes. Alas, I did not fulfil that vow and it has come back to bite me – I’m sitting at my chair trying to type with the bulk of a thick jumper getting in my way.

It’s certainly far from a life-or-death situation but boy is it annoying, especially when living in an era where all inconveniences can be solved with the tap of a finger on a small glass screen.

So, I’m left with the choice – do I scratch that itch and spend money solving that minor inconvenience, or do I make do with what I’ve got?

The bargain hunter in me baulks at the idea of paying mid-season prices for items of clothing whose entire purpose is to remain hidden underneath outer layers. I’ll probably wait and renew my vows to prepare better next year.

I’m lucky to have that choice, though. While some layering tops would be a nice-to-have, they’re not a necessity and I therefore have the luxury of choosing not to buy them.

I can’t say I haven’t been tempted, though. Especially as so many stores these days offer buy now, pay later services.

Everything seems so much more affordable when divvied up over six weeks, right?

For those of you who have never used buy now, pay later services, , let me give you a brief rundown: Think of them as the layby of the modern age. You go to the company’s website, fill out their form and provide valid identification, link it up to your debit or credit card, and away you go.

From there, you can add your buy now, pay later account to your phone’s digital wallet and tap it on a shop’s Eftpos machine to pay for your items, just like you’re able to do with your credit or debit card.

Tap your phone, pay a deposit, and take your items home, and the rest of the payments will be automatically deducted from your account when they’re due. That’s it. There are no extra fees (unless you’re late on a payment of course), no interest, and no waiting.

It’s so easy. And, in my view, that’s the scary thing about it.

The practice of using buy now, pay later for meat and groceries was the subject of a news article last weekend.

Imagine taking home $400 worth of meat and only having to pay $100 upfront. And when you’ve got the money that week, it seems super feasible that you’ll have enough for the next payment in two weeks’ time, too.

If you’re really good with money and a strict budgeter, using these services probably won’t do you any harm. In effect, it’s like saving up, but in reverse. Buy now, save later.

But, in my opinion, there’s still a chance that buy now, pay later could come back to bite you. It may be free to use, but the services will still charge you a late fee if you miss a payment.

And there’s more pressure on tight budgets in winter.

It’s an awful time of year for so, so many reasons – and the cost of everything would be right at the top of that terrible list.

Literally, everything except potatoes costs more. The weather is miserable and that makes people miserable.

The bad weather means there are not a heck of a lot of free or low-cost ways to spend your time. And that means you spend a larger portion of your time at home, consuming more power and more food right when they’re at their most expensive.

And, of course, winter can mean that people who work outdoors have their hours reduced due to bad weather, and common winter ills can result in fewer hours worked as well.

It’s a potential recipe for disaster.

Buy now, pay later services seem so attractive on the surface, don’t they? It’s all your own money, after all.

The thing is, I believe if you have the money to pay for these items, you’re more likely to pay in full than choose to pay it off. And the reverse is true, too: If you’re using buy now, pay later, it’s likely because you can’t afford to pay in full.

It does have its uses. But it’s something that I believe should be used rarely, like an emergency credit card or a rainy-day savings account.

Maybe you need new tyres this week to get a warrant, or maybe your fridge died. In my opinion, those are pretty good reasons to use buy now, pay later services.

But those of us on tight budgets need to be smart with our money. And if it’s not an urgent item, then I believe sometimes the smartest thing to do is save up – even if it means having to wait.

My view is if you can’t afford to buy now – then you probably shouldn’t.

Sonya Bateson is a writer, reader and crafter raising her family in Tauranga. She is a Millennial who enjoys eating avocado on toast, drinking lattes and defying stereotypes. As a sceptic, she reserves the right to change her mind when presented with new evidence.