“Buy Now Pay Later” (BNPL) schemes are becoming very popular, especially with online shopping on the rise.
It seems convenient — you get the product immediately and pay for it later in easy installments. This is especially attractive to young buyers.
But behind this convenience, there are hidden risks. If you don’t use BNPL carefully, it can lead to big financial problems.
1. A Helpful Tool Can Turn Into a Bad Habit
The idea of “No need to pay now, I’ll pay later” can make you spend more than you should. It encourages unnecessary shopping. You might think you’re getting a good deal, but slowly, your spending habits can go out of control.
2. Hidden Charges Make the Bill Bigger
BNPL companies often advertise zero interest or no extra fees. But if you miss even one payment, you could be charged a late fee of ₹500 to ₹1000.
On top of that, they may add convenience fees or taxes. These small amounts can add up to a big bill over time.
3. Late Payments Can Hurt Your Credit Score
If you don’t pay your BNPL dues on time, the company may report it to credit agencies. This can harm your credit score.
A low credit score can make it harder to get loans or credit cards in the future.
4. It Can Lead to a Cycle of Borrowing
Because you don’t have to pay upfront, you might keep using BNPL again and again. Some people even use multiple BNPL services at once.
As a result, they end up with many payments every month, which become hard to manage.
5. Less Protection for the Customer
Compared to credit cards, BNPL offers fewer benefits and protections. For example, if you receive a faulty product or return it, the EMI might still be deducted.
This happens because communication between the BNPL company and the seller isn’t always smooth.
6. How to Use BNPL the Right Way
BNPL is not completely bad. You can use it for important purchases — but only if you’re sure you can pay the installments on time.
Always read the full terms before choosing “Pay Later,” and ask yourself if the item is truly needed.
Final Advice
“Buy Now Pay Later” may sound easy, but it can lead to financial stress if misused.
Always use it wisely and with full awareness. Don’t let short-term comfort create long-term problems.
