Are payment schemes worth it?

QI keep hearing about ‘buy now, pay later’ schemes. Should I use them or are they something to be concerned about?

AFAITH SAYS Buy now, pay later (BNPL) options from the likes of Klarna, Clearpay and Laybuy often pop up when shopping online, with the chance to delay payment or pay in instalments. It’s super-easy to sign up and frequently interest-free. BNPL can be useful if you need to spread costs or snap up a sale item just before payday. However, if you miss payments, you can face late fees and get chased by debt collectors. This can damage your credit record and affect your chances of borrowing in future. The government plans to regulate BNPL, but right now the interest-free versions aren’t covered by the Financial Conduct Authority. This means companies aren’t required to display the same credit warnings, and you can’t complain to the Financial Ombudsman if things go wrong. Like any form of debt – handle with care! ✱ muchmorewithless.co.uk