To credit or not to credit?

It wasn’t so long ago that if you didn’t have the money for something, you simply went without or saved up. The likes of credit cards, loans and Afterpay have changed our purchasing behaviour, but is it for the better?

It can be tempting to spend beyond your means, particularly as Afterpay is relatively accessible. The Empower Financial Advice team have put together their top three pros and cons of this service so you can think before you buy and avoid getting into financial trouble.

The pros

  1. Great for an essential item that you need quickly and can’t wait to save for.
  2. Will spread the purchase cost out in manageable chunks.
  3. Can be cheaper than a credit card if used responsibly.

The cons

  1. Facilitates impulse buying rather than shopping around for bargains.
  2. Can lead to spending beyond your means.
  3. Could cost you financially and emotionally, particularly if you are easily stressed.

If you need help with wealth creation or debt management, speak to one of the friendly Empower team today and find out how we can help.