05 Mar Afterpay explained
So what is it exactly?
Similar to a layby, Afterpay is an interest free buy now, pay later service with one key difference. Unlike layby where you pick up the products after full payment is made, with Afterpay you get to take home your purchase straight away. The first payment must be paid immediately, then the balance will be paid over four fortnightly instalments until it’s complete.
Before using Afterpay its worth considering:
- There is no limit for how many Afterpay orders you can have going at any one time.
- Afterpay doesn’t deal with refunds
- If you miss a payment, ongoing fees are applicable
- If you have outstanding payments, you cannot make any new purchases
- Afterpay reserves the right to perform credit checks on you at any time
- Afterpay can report negative activity to Credit Agencies which may impact your credit rating
Note: Please visit the Afterpay website to read the full list of terms and conditions.
If you chose Afterpay because you are struggling with money and end up struggling to keep up to date with your Afterpay payments, you may want to try a Debt consolidation strategy. “Debt consolidation” means refinancing your debt onto the lowest interest rate possible – and setting up a realistic repayment plan to get it paid off! Of course, any debt consolidation strategies can only be successful if you cancel or cut up your credit cards and avoid running up any further debt. If you can commit to that, debt consolidation can potentially save you a lot of money.
There are a few ways that you can do this:
- Consolidate your credit card debts into one personal loan
- Transfer your debt onto a card offering low balance transfer
- Incorporate the debts into your mortgage.
If your situation has negatively impacted your credit rating, you may find that you are not eligible for a loan to consolidate, can’t transfer to a new credit card or even re-mortgage. You may find yourself in a real struggle with debt collectors chasing you and it seems like you might have to go bankrupt.
How we can help
There are alternatives even if your situation is serious. Talk to us about the Financial Hardship obligations of your creditors, Moratoriums and restructured payment amounts and at Active Debt Specialists, we are experts at implementing the Debt Agreement* repayment option, which has no interest, stops debt collectors and your repayment is only what you can afford.
Find the right solution to help solve your credit card debt issues.
Give us a call today on 1800 085 550 for a free no- obligation confidential chat.
* Debt Agreements will affect your credit rating and conditions apply. Find out first.