Wise Tips for Using Paylater
The presence of the paylater feature is considered an attractive option because it is easier to submit. Just armed with your personal data and selfie along with your KTP or other form of identification, you can enjoy this online loan facility.
Plan Your Finances with Us
Contact us
Do you know the meaning of Paylater itself?
Paylater can be interpreted as “pay later”. In other words, you can buy the items you want using the installment payment method, which is not much different from a credit card.
Currently, paylater services are available in almost all marketplaces so they are easy to access directly from the payment page. Apart from that, it is not uncommon for marketplace platforms to provide vouchers and special promotions for payments using paylater , attracting more attention to using these facilities.
Understand the purpose of shopping before using Paylater
It is important to understand the purpose of shopping, especially if you will be paid with paylater . Strict restrictions need to be made if the items purchased are simply to fulfill desires, not needs. This momentary pleasure can accumulate debt.
These problems can ultimately disrupt the financial cycle and lead to unnecessary debt.
Want to Use Paylater ?
The following are some tips that you can apply before activating Paylater
1. Understand the Paylater Payment Scheme and Interest
Before using Paylater, it is very important to understand the Paylater payment scheme . These include the number of installments that must be paid and the amount of interest. Each paylater provider has its own scheme for its services. For example, some service providers set the due date on the 15th of every month, and charge interest of 1.5% and a transaction fee of 1% of the transaction value. In addition, almost all paylater providers charge fines if users are late in paying their bills.
Therefore, before using the paylater facility, the mindset that needs to be applied is that every time you use the paylater it is the same as going into debt.
2. Include Paylater Use in the Debt Ratio Calculation
Whatever you call it, paylater is a form of debt. Therefore, you must include the amount of usage in the debt ratio.
In the financial planning formula , the ideal debt ratio is below 30% of monthly income. For example, if your income per month is IDR 30 million, this means that the amount of your debt, including the use of payment , should not be more than IDR 9 million.
Even though the percentage is not an absolute number that must be followed, in general this formula can help you ensure that your monthly income is not used up just to pay off unnecessary debts.
Also read: 50/30/20 Budgeting Method for Financial Management
3. Use When Needed
Another thing that is no less important is the ability to control oneself over the desire to buy something.
Never use paylater unless it is an emergency. Payments used to buy wants, not needs, can be postponed until the money is actually collected. Apart from that, make a financial plan so that you can still have savings every month.
Before deciding to buy an item, think again about whether the item is really needed at that moment so you have to buy it by going into debt using paylater . Take advantage of the financial planning that has been established as a reference for the priority scale.
Also read: Understanding the Difference between Needs and Wants
Paylater facilities are indeed very helpful because of all the conveniences they offer, but unfortunately, the ease of transactions can actually encourage someone to be more consumptive which leads to impulsive behavior. If not treated immediately, this impulsive behavior can be a risk to your financial condition.
One thing that can be done to avoid impulsive behavior is to carry out financial planning. By making financial plans and recording daily, weekly and monthly finances to maintain stable financial conditions.