Buy now, pay later (BNPL) is a quick payment method that allows users to purchase products or services without paying for them in real-time. The lending BNPL-partnered company covers the cost at the time of purchase, and the user then repays the amount in installments to the company over the next few pre-determined months. While the BNPL scheme sounds like an ideal method of financing, it has its pitfalls. Making mistakes while dealing with it can quickly add up, costing more than initially anticipated, and spiral one into a financial pit. Here are some common mistakes to avoid: Not reading the terms and conditions The BNPL schemes have specific terms and conditions, and skipping the details before signing up can damage the pocket. For example, even though BNPL has no interest, one may incur late fees in case of missed or delayed payments, which can also affect one’s credit score. Therefore, it’s crucial to read the BNPL’s fine print thoroughly. Overusing BNPL schemes Using services like BNPL to make impulse purchases is always tempting since it comes with no upfront cost. This can often lead people to overextend their finances. To avoid this situation, one should utilize BNPL mindfully to make valuable and anticipated purchases like a work laptop or household appliances.