“Overindulging Amid Financial Strains: Splurge Now, Pay Later or Pinch Those Pennies?

It’s no secret that the coronavirus pandemic has had a dramatic impact on the financial security and mental health of individuals. With many people having lost their jobs or having their hours reduced, money worries have become an unwelcome part of everyday life. Yet, rather than putting a halt to their purchases, some are finding alternative routes, such as opting to ‘buy now, pay later’. The Buy Now, Pay Later (BNPL) concept, made popular by retailers like LayBuy and AfterPay, allows customers to purchase items now and pay later in interest-free installments. This flexible payment option is particularly attractive to those impacted by the pandemic, either out of necessity or as an attempt to inject a sense of normalcy into their lives. Despite its popularity, the financial implications of BNPL for struggling shoppers remains a real concern. Not all shoppers are succumbing to their urge to splurge. Instead, some are tightening their budgets, forgoing expensive items and only buying the most essential items. They’ve learned to make the most of what they have, creating meals out of pantry or freezer staples, forgoing boutique shopping trips and cutting back on expensive habits such as takeaway and take-home coffees. Though the two approaches of shopping – tighten the purse-strings or break the bank –are extreme ends of a spectrum, it’s important to note that there are rewards systems and flexible payment options available to those struggling financially. While some may credit payday lenders and BNPL services as predatory money traps, others may view them as a Godsend in difficult times. Pawn brokers and layaways have been around for centuries, proving invaluable to those struggling to make ends meet. The coronavirus pandemic has had detrimental consequences for many, including financial insecurity. As such, the way that some individuals choose to cope with their money worries is all the more important. Buy now, pay later or pay later, shop smarter is a personal choice that we all have to make – an economic hardship does not have to be a breaking point.