Buy now pay later finance especially on an interest free basis used to be common place several years ago. Companies like the CoOperative used to offer furniture and consumer goods like tvs and hi-fis on interest free terms with payments spread over a duration of one or two years.
It seems that these buy now pay later deals are still available but no longer on an interest free basis. Companies like Brighthouse offer buy now pay later finance but charge very high rates of interest on the borrowing. You may end up paying 30 or 40% more for a consumer product than if you had paid cash for the product.
Buy now pay later is no a cheap ay to buy
It seems to be a sign of the times that companies are no longer really able to offer interest free credit. As the recession has continued to kick in bad debts have been on the rise. Companies have had to write off loans to individuals who had bought goods on tick.
As a result companies like Brighthouse charge high fees for buy now pay later deals in order to recoup as much money as quickly as possible. In this way they are not sitting on a large loss and can at least recoup some of it back at the onset.
