Here’s how you can make big purchases now and pay later

BDO Unibank

Posted at May 26 2022 01:04 PM

Photo source: Shutterstock, purchased by BDO Unibank
Photo source: Shutterstock

For most people, their monthly salary is properly allocated to things such as utility bills, daily expenditures, and savings. While making a detailed budget every month is a good way to prevent overspending, life can be unpredictable and you may suddenly need to replace your broken fridge, get a new laptop, or worst, be hospitalized. When your paycheck is just enough for your monthly expenses, an unexpected huge payment could hurt your wallet.

When you find yourself in this situation, do not panic. Check out these tips on how you can afford large expenses without dipping into your savings.

Differentiate between want and need

Is that big expense urgently needed? Or is it just something that you really want? Be able to differentiate if what you are planning to buy now is a real need or a want.

Will it affect your work or daily life? Can you function for a few more weeks without it? These are some of the questions you need to ask before making that big purchase. Because by knowing this, you will be able to better decide whether you have to spend for it now or save up money to buy it later.

Prepare an emergency fund

An emergency fund is a helpful tool that provides a buffer for when these unexpected expenses come. It is where you can get money without having to withdraw from your savings or borrow money from friends and family.
 
Try to portion a small amount from your monthly salary to an emergency fund. It does not have to be big, but over time, this fund will grow and you will be glad you started one when the rainy days come.

Take advantage of buy now, pay later deals

If you find out that your emergency fund or extra money is not enough to cover the immediate payment you need to make, then you may want to check how many months you will need to gather the right amount. But that does not mean you have to wait that long to get the item you need or pay for unexpected expenses.

Take this scenario for instance. Your extra money is P3,000 per month, but you need to make a payment of P36,000. Normally, that will take you about a year before you have enough to make that purchase without denting your monthly budget. However, there are options such as BDO's Buy Now, Pay Later that will allow you to make that purchase immediately without having to wait months to save the money you need.

BDO Credit Cardholders may avail of the Buy Now, Pay Later option in over 19,000 in-store or online partners. They have the option to pay 0% interest up to 24 months term or a low 1% add-on rate per month for up to 36 months term. That way, there is no sudden pressure to shell out such a large amount. You can spread out your payments over a long period.

The first monthly installment on Buy Now, Pay Later transactions will be billed on the next statement after the transaction date. The payment due is 25 days after the statement date. For example, you had to buy an item worth P10,000 in one of BDO's in-store or online partners. The payment you made with Buy Now, Pay Later will reflect on your upcoming statement and you have 25 days to prepare for your first payment. Succeeding installments will be billed every month thereafter until the full amount is paid, so it is lighter on the pocket.

By remembering these tips, you do not have to put off replacing broken appliances or furniture, paying tuition or sudden hospital bills, or going on a much-awaited vacation. You will also keep your savings intact and avoid putting a hole in your wallet as payments can be made conveniently over time so you still have a chance to save up for it.

To know more about BDO's Buy Now, Pay Later offering, visit its website or check out its Facebook page. Find out deals that will reward you every time you spend here.

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