Making buy it now pay later services work for you

The buy it now pay it later (BNPL) revolution is here, and if you’re like most people, you’ve probably overspent on your zip and afterpays on your Christmas shopping and Boxing Day sales.

So let’s take a step back and kickstart 2019 with better habits and ensure that your purchases don’t get in the way of reaching your financial goals for the year.

A clean slate

If you haven’t done so already, now is the time to set realistic goals for the future, and you can’t do that without a review of your end of year spending habits.

Use Frollo to review your spending habits on Afterpay like services as well as other credit card purchases. (Remember to take into account future installments too!)

Update your Frollo budget paying close attention to your Lifestyle Expenses limit for the coming month.

Afterpays in moderation

In December last year, Scott Pape, The Barefoot Investor wrote: “Afterpay is the financial equivalent of marijuana”. He views it as a “gateway financial drug” which isn’t terrible in the short term but can be quickly addictive.

The convenience of these services has made it very easy to quickly accumulate multiple repayment plans from various providers.

And before you know it you’re struggling to make your credit card payments in the short term or save up for that holiday in the long term.

And the late fees can sting and in some cases using these services can hinder your chance of lenders give you a loan in the future.

So don’t get into bad habits, like all things in life, use these services in moderation, and keep things in line with your budget. If you have a bad month that’s OK, use Frollo to help recover in the next.

But, if your review already reveals you’ve binged too much and are hooked then try these tips:
– have the money equivalent of a “Dry January” and don’t use BNPL services for the rest of the month. Talk to your friends and make it a group goal to achieve together.
– many people use Afterpays for impulse buys which we can regret later – so if you’re feeling that impulse, save yourself the debt and sleep on that impulse buy before signing up to more repayments.
– use a debit card instead of adding to your credit card debt.

The buy-it-now-pay-later revolution is definitely here to stay and consumer advocates and governments are looking carefully at regulation to ensure consumers are protected. But the best regulation is getting yourself into good habits and as Scott puts it “check yourself before you wreck yourself”.

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2 thoughts on “Making buy it now pay later services work for you”

  1. Can you link afterpay or ZipMoney in the frollo app so it updates balances daily like the rest of the accounts? Keep up the good work by the way, and get us some more regular updates with new features like custom time periods for reporting and budgeting.. This will allow us to line up budgets with pay periods..

  2. ZipMoney was working for a while, then it disappeared. and Raiz is having difficultly in connection as well.

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Frollo is a purpose-driven Australian FinTech on a quest to help people feel good about money. We’ve built the simplest way to help people get their finances on track – and through our business ecosystem, we’re supporting our enterprise clients to do the same for their customers.

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