If it's hard to afford your layby or buy now, pay later payments, think about why. Look at your spending habits. Talking to a budgeting advisor in your community can help.
Free confidential advice(external link) — MoneyTalks
Buy now, pay later sales
Schemes like Zip, AfterPay and LayBuy can help smooth out your spending, so long as you don't buy more than you can afford.
But it is a form of short-term debt. With no interest to pay, it can be a better alternative to high-interest options like credit cards or loans.
Like all debt, there are risks, including:
- spending more than you expect, especially if you find it hard to resist temptation when shopping
- no longer being able to afford payments if your life changes, for example, job loss or rent increase
- extra costs in the form of late fees if you miss payments — making your item more expensive — which may also affect your credit rating.
Before agreeing to buy now, pay later, ask yourself if you are good at:
- tracking your spending, and
- keeping up to date with payments.
If you are using buy now, pay later to purchase everyday necessities like food and petrol, you can talk to a community budgeting advisor. You can also find budgeting advice and tools on the Sorted website:
Budgeting tips(external link) — Sorted
Rules and rights
Buy now, pay later sales are different from traditional laybys — and layby rules and rights don't apply.