LEGAL Aid Queensland wants people to think carefully before using buy now, pay later schemes and to be aware of the pitfalls.
Consumer advocate and principal lawyer Paul Holmes said credit cards were often a better option, although it was important to know all the pitfalls.
He said there had been an increasing trend over the years which saw people opting for “buy now pay later” arrangements over a credit card because, unlike a credit card, they’re not charged interest.
“But buy now pay later schemes come with a potential sting-in-the-tail—any late payments mean you’ll be charged a late fee,” he said. Â
“Some companies may also charge payment processing fees or monthly account fees and if something goes wrong, people have less legal protections with a buy now pay later contract than they do with a credit card or personal loan.”
Mr Holmes said people experiencing problems with a buy now pay later contract can get help by calling Legal Aid Queensland on 1300 65 11 88 or by calling a financial counsellor on 1800 007 007.Â
