Buy Now, Pay Later services can feel like a lifeline when money is tight. With no upfront costs and easy instalments, it seems like a smart way to stay afloat or treat yourself when the budget is stretched.
But what looks like flexibility can quietly chip away at your financial stability. As more Australians rely on credit just to cover groceries or everyday expenses, it’s worth taking a closer look at what this type of borrowing really costs, and how to take back control.
“It’s only $20 a fortnight”
These services are designed to feel manageable. You see the total split into smaller payments, and the stress of spending seems to disappear. But that’s where the danger lies.
It’s easy to forget that those small repayments quickly add up, especially when you’re juggling multiple purchases. Suddenly, $20 here and $40 there turns into a few hundred dollars owed before your next payday even arrives.
These services are built to encourage short-term thinking, so there’s no need to start blaming yourself. The key is to recognise the pattern and break the cycle.
The hidden impact
Relying on short-term credit can quietly change the way you see money. Instead of planning ahead, it becomes about patching over gaps, and that stress builds up fast.
The moment your pay comes in, a chunk is already spoken for. That means you’re starting the next fortnight on the back foot, often reaching for credit again just to stay level. It creates a cycle where even essentials like food and bills end up on borrowed money.
This also affects your confidence. You might start to feel like you’re bad with money, when really you’re just stuck in a system that rewards urgency and impulse over calm planning.
Better ways to manage spending
It’s not always possible to avoid using these services, especially during tough months. But there are a few habits that can help you feel more in control.
Start with a pause. Give yourself 24 hours before buying anything that isn’t essential. This simple delay can make it easier to spot what you truly need.
Next, try building a “micro-buffer.” Even saving $100 can give you breathing space so you don’t have to reach for credit when something small comes up. Use whatever tools make it easy, such as separate accounts, round up services, or a savings challenge, whatever works for you.
And if you’re already juggling repayments, you don’t have to clear it all at once. Focus on one account at a time, or even one payment. Progress builds momentum.
One step at a time
Short-term credit might seem like a solution, but it often creates more pressure in the long run. Fortunately, once you see the pattern, you can change it.
Start small. Say no to one tempting offer this week or map out a plan to pay down one balance. Every positive decision creates more financial confidence. You are not behind. You are learning how to be the boss of your money, and that’s a skill that lasts far longer than any payment plan.
