ECONOMICS
CREDIT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Buy now, pay now
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Buy later, pay later
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Buy later, pay now
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Buy now, pay later
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Detailed explanation-1: -Buy now, pay later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them over time, usually with no interest. Using BNPL financing can be convenient, but there are also some potential traps to consider.
Detailed explanation-2: -The popular Buy Now Pay Later (BNPL) products you are often offered at the checkout are credit agreements – a form of borrowing. With these products, you usually don’t pay any interest or charges on the amount you’ve borrowed if you keep to your repayment agreement.
Detailed explanation-3: -What is buy now pay later? Buy now pay later schemes do exactly what they say – you get the opportunity to buy something now without having to pay for it in full until a later date. Schemes vary and the delay period for spreading the cost of goods can be anything from 30 days up to three months.
Detailed explanation-4: -Credit is the ability to borrow money or access goods or services with the understanding that you’ll pay later.
Detailed explanation-5: -Key Takeaways. Buy now, pay later plans allow consumers to make purchases and pay for them in several installments. Credit cards also let consumers pay over time, but the only required payment is the monthly minimum due. The pros and cons of BNPL plans and credit cards depends on the consumer’s financial situation.