While getting your item sooner might seem like a good thing, there are a few things to keep in mind.

How it works

It's the modern day lay-by, but you get to collect the order before you pay it off. You don’t pay extra when you make your payments on time, and the platform boasts a quick and easy approval process. You need to be at least 18 years old and able to enter into a legally binding contract. 

What you need to know

1. Fees and charges can apply: miss a payment and you’ll be charged a late payment fee. They also may stop you from making further purchases until your debt is paid, and if you fail to make payments you could be reported to a credit reporting bureau.
2. You shouldn’t always rely on it: the service uses an algorithm to work out how much credit they will provide you with based on the information provided in your application. Just because you have used Afterpay before doesn’t mean they’ll approve your purchase again, so it’s good to still have some money saved just in case.
   
3. Impulse buying isn’t always smart: when you save up for something you’re effectively taking a cooling-off period that allows you to consider how much you really want (or need) an item. It also gives you time to shop around, check prices and read reviews. If you’re already prone to impulse buying using an after pay service could be a dangerous way to splurge.
   
4. Use it responsibility: self-control is a must if you’re going to utilise these services. As these schemes are relatively new, they aren’t yet highly regulated. The credit provider doesn’t have an obligation to check that you can actually afford to make repayments before they lend you the money. If you don’t pay it back on time your items could cost you a whole lot more than the original price. 
5. Not all merchants offer it: while literally hundreds of retailers now allow you to use Afterpay or Zip Pay not all stores have caught up. Most major retailers including Myer, Jetstar, Typo and more are on-board but others still rely on the traditional pay before you play model.

Our tips to stay in control

• set payment reminders to avoid late fees
• stick to a budget and don’t spend more than you can afford
• link a debit card instead of credit card to your account to limit spending

Do you know what kind of spender you are?

It’s great to snap up a couple of bargains in the Black Friday sales, but if you’re constantly overspending maybe you need learn more about your spending trigger?