When something sounds too good to be true…
Turn on the TV or shop online at many popular retailers and you are likely to be offered buy-now, pay-later deals made possible by the likes of Klarna, Clear Pay and Laybuy. These inviting payment options allow you to get your hands on that must-have item while paying for it some time down the line.
Sounds great, right? If you need that new outfit for that big night out but haven’t got the cash until payday, what could be more helpful?
But there are growing concerns that these convenient payment options come with strings attached. For example, as the BBC recently reported, failure to pay on time – as well as incurring late fees – will impact on your credit score. And evidence from the likes of the Australian financial watchdog is mounting that the ability to pay later is leading many to buy more than they otherwise would and beyond what they can really afford.
With interest rates from Loans 2 Go of 989.9% APR and a £400 loan over 18 months costing you £1,600 in repayments, it’s not hard to see why!
The Credit Union Difference
Here at The Co-op Credit Union, we do things differently. With payroll deductions, we make repaying your loan and building savings painless – so putting something aside each payday to create that shopping fund couldn’t be easier.
And when that purchase really can’t wait we’ll lend as little as £50 and our maximum interest rate is 29.8% APR. So £500 over 6 monthly repayments would cost you only £38 in interest.
We can’t always help with a loan but we’ll always try and we would only turn you down if more borrowing will only leave you overextended.
