Risks of using the Pay Later feature

Think About It! These are some of the risks of using the Pay Later feature

Pay later services or pay later are now increasingly being used, especially since the proliferation of a number of e-commerce sites that have launched this feature. This feature is actually not much different from the credit card system. With this feature, when you buy something like goods or airline tickets, the application company will pay for the transaction. After that, you are required to pay bills along with certain interest to the application company in installments over a predetermined period of time.

This feature is certainly very easy if you need something, for example buying food, gadgets, airline tickets or other needs without having to bother providing money up front. However, this feature is not without drawbacks. There are several risks using the pay later feature that you should be aware of. Anything? Here it is in full.

Encouraging Consumptive and Wasteful Behavior

The ease of buying goods with a pay later feature can encourage consumptive behavior. So easily you will continue to be driven by an impulsive desire for a certain item or service when you actually don’t really need it. As a result you can not save or save. Because you have spent all your money on things you don’t need.

Pay Later feature

Pay Later feature

High Interest

Behind the convenience offered by this feature, there is a high interest that you have to bear when paying the installments. In addition, there are other costs other than interest that you have to pay, such as subscription fees which are activated immediately when you use the pay later feature. Of course these costs will be burdensome when you will pay the bill because the nominal is not small.

Disrupted Financial Planning

Not much different from debt, this pay later feature can interfere with the financial planning that you have compiled at the beginning. Especially if you use it too often. Because you have to pay installments with high interest within a certain period. Even though the funds that you use to repay the bill from pay later, you can actually save or buy other things that are more important and useful.

Arrears Risk

With high interest, the risk of arrears in installment payments from the pay later feature also increases. Even though all debts will be monitored by BI through BI checking. From BI checking it will be clear whether you can pay the installments smoothly or not. If you are in arrears in installments, then it will affect your credit reputation record. Even though if your credit record is bad, when you want to apply for other loans that are more important and urgent, such as property or vehicles, the risk of being rejected by the bank will be even greater.

Identity Hacking Risk

Although every company that provides pay later features has anticipated this by providing high-level security protection for its users, the risk of hacking the database in the user’s transaction account and using it for irresponsible things still exists. So you have to be careful.

By being aware of these risks, you must be more careful and consider carefully if you want to take advantage of the pay later feature. Know and understand the need and ability to pay the installments. Use this feature wisely and don’t overdo it.