Using Credit Wisely – Guest Blog from Paul Fox, Money and Pensions Service 

As a provider of home improvement loans funded by councils, at Lendology, we get the importance of managing finances wisely, especially when it comes to responsible credit use.

Using Credit Wisely 

Credit is a useful tool to help you spread costs, especially for bulk buying of everyday items if you can save money. But if you find you’re not meeting loan payments or are using credit to pay for essential items like food, you need to take action. These steps will help if you’re overloaded with credit from different sources – such as credit cards, loans, overdrafts and short-term credit products such as Buy Now Pay Later or are considering borrowing money from friends or family. 

https://www.moneyhelper.org.uk/en/money-troubles/cost-of-living/using-credit-wisely

Buy Now Pay Later 

If you’re buying online, paying in a shop or even ordering a takeaway, Buy Now Pay Later (BNPL) can seem like a quick and easy way to pay. But BNPL is a form of borrowing so you need to think carefully before using it, especially if you’re spending more than you can afford to pay back. Give yourself enough time to think about how you’ll repay. Some retailers encourage people to choose BNPL over other ways of paying by making it the default payment option or offering an incentive, such as a discount or free delivery. But it’s important to give yourself enough time to think about how you’ll repay and decide if BNPL works for you. 

It’s important to understand what you’re signing up for by checking the terms and conditions, as most providers take a different approach to charges and late fees. Some even charge if you repay what you owe early. As with any type of borrowing, there are risks you need to be aware of – especially as BNPL isn’t regulated in the same way as other consumer credit products and not subject to the same warnings. Having lots of BNPL agreements of small amounts can start to build up. As well as checking you can afford all repayments on top of any other bills, make sure you keep track of when every payment is due. 

https://www.moneyhelper.org.uk/en/everyday-money/credit/what-are-buy-now-pay-later-purchases

This is intended to be a general guide and does not constitute financial advice. You can seek financial advice from a financial advisor or take a look at these resources to get started: 

https://maps.org.uk/en

Author: Paul Fox