Curious about buy now, pay later but worried about interest fees and charges? In this article we tackle your concerns head on.
Buy now, pay later can be a great tool for staying on top of payments, big and small. But like any financial solution, it’s important to fully understand the product to know if it’s right for you.
Here, we’ll look at some of the biggest concerns you might have around BNPL and give you all the information you need to make an informed decision.
BNPL to manage your budget
Put simply, humm allows you to access an item when you need it and cover your payments in easy instalments, always interest free, so you don’t blow out your budget for the week or month. It’s split into two tiers, allowing you to cover small, everyday purchases up to $2,000 as well as those larger life expenses, all the way up to $30,000.
Even when you do have the funds to pay for something up front, you might get some peace of mind from knowing that you can take control of your budget by staggering payments on a costly item. By only paying a slice at a time, you can manage your budget and spend within your means.
Managing BNPL repayments
One of the biggest concerns of BNPL newcomers is that it will lead to overspending and result in increased debt. The important thing to remember with humm is that whatever level you choose, your suitability will be assessed.
Humm also allows you to track your upcoming payments on the humm app so you can monitor how much is due and when to ensure you are fully prepared for each payment and stay within budget.
You can choose whether you want to pay off your item quickly, or spread it out over a longer period – whatever works best for you. If you’re spending less than $2,000, you have the option to repay in five fortnightly or 10 weekly instalments. As you make repayments, you can gain access to funds again.
For those bigger purchases, there’s the option to get pre-approved for up to $5,000 online or via the app, but you’ll need to apply in-store to receive between $5000 and $30,000. These larger amounts can be repaid over a more manageable timeframe of between six to 60 months, depending on the amount spent, but they do follow different rules and carry some additional charges.
There’s a calculator on the website that can help you understand your repayment options before you commit.
Interest fees and charges with humm
Another key concern of BNPL is crippling interest fees and charges. Let’s face it, nobody wants to get caught out with hidden charges in the fine print. With humm, all fees are clearly laid out on our website so you know what to expect.
For purchases under $2000, an $8 monthly fee applies only if you opt to spread repayments over 10 fortnights. Beyond that, the only other one to consider is a $6 charge for late payments.
The best part about humm is the comfort in knowing you aren’t going to rack up any interest fees. Yep, none!
Check out How it Works on humm for more information on fees and repayments.