Many high-street retailers offer goods with a ‘buy now, pay later’ option. This means you can have the item now but your first payment is not due for 6 months. The retailer usually offers this with more expensive items such as furniture or electrical goods.

It can be tempting to buy expensive items using buy now, pay later deals, but you need to consider the following:

• Will you be able to afford the payments when they become due?
• What is the amount of interest you will pay?
• Is there cheaper finance you can use?
• Can you save up for the item instead?
  

If you buy an item on ‘buy now pay later’ you sign a credit sale agreement. This means that you own the goods and they cannot be repossessed.

If you do not pay your required payment, the creditor will follow their collections process. They may eventually issue a default notice and take action to collect the money you owe.

If you are having problems paying your debts we can help you. You can use our online debt counselling service, CCCS Debt Remedy, which will provide you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline on 0800 138 1111.

If you have to make a complaint about a ‘buy now, pay later’ agreement, contact the creditor first.

The creditor is the company who provides the finance. This may be a different company to the shop who provided the goods.

Creditors offering this type of finance must have a consumer credit licence to trade, so if your complaint is not resolved within eight weeks, it can be referred to the Financial Ombudsman Service.