Christmas shopping is now under way and for some families they simply don't have available funds to buy presents.
These families may be tempted to borrow money, but do you know how each different form of credit works?
Buy now pay later
You can order Christmas gifts now and not have to worry about the payments until up to 12 months time, it sounds perfect, however, for many people, such deals may actually cost a lot more if they are not in a position to clear the entire debt before the buy now pay later period ends.
Pay Monthly Catalogue Credit
This form of Credit is the most traditional used by most customers and offered by all Catalogue companies. You can place your order up to your agreed credit limit and each month you will be required to pay at least a minimum repayment, this is usually around 5% of the balance owed.
Interest Free Credit
Some catalogue companies such as Very and Studio will offer you the chance to buy now and spread the cost over the next 3 months, interest free, this option is good for those with a good disposable income, however, if you miss a repayment, interest will be applied.
Christmas is a very expensive time of year and it's important to consider when the repayments start, that may be January if you elect for pay monthly catalogue credit terms.