Why Have Interest-Free Payment Plans Gained Momentum Lately?
Today, most companies are coming up with this interest-free payment plan (popularly known as Buy Now, Pay Later) to boost the sales of their products like cars and electronic gadgets. Interest-free Payments Surrey allows you to purchase the product instantly and pay for it interest-free over a certain period. It would be the best of all the available options if handled properly; else it could turn the other way around.
If talking of Canada itself, interest-free payments have grown immensely in the past year. E-commerce has contributed to this a lot. Looking at the current scenario, this payment option is expected to grow at a CAGR of 27.5% during 2022-2028 and if Gross Merchandise Value of this plan is considered, it is expected to grow from US$ 6,193.7 million in 2021 to US$39,480.2 million by 2028. Let’s look at the factors that are promoting its popularity.
1. Short-term financing plan
Interest-free Payments Vancouver allows the deferment of full payment.
Only a certain part of the amount is supposed to be paid at the time of purchase. Some promotional period is given wherein no interest is charged if the full amount is paid. After that, interest is paid only on the remaining balance. Hence, it is convenient for consumers, as it finances them free of cost.
2. No adverse effect on credit score
If people in Vancouver or anywhere in the world pay the amount regularly and on time, it doesn’t hamper their credit scores. But if they defer payment or fail to do so, it could affect their credit score adversely which is obvious too.
3. Easy finance option
Interest-free Payment plans, also known as ‘point of sale installment loans’, are widely accepted by people while shopping online as well as offline. Generally, applying for a loan involves a lot of formalities and paperwork but it is not the case here. This option is highly convenient for consumers.
4. Hassle-free process
Approval for such payment plans is a lot easier than the conventional ways of obtaining finance like loans or credit cards. Application is normally done with only a single click, requires easy signup and people do not need to fulfill any lengthy paperwork.
5. Uncomplicated payment structure
Interest-free Payments have a very simple payment structure. The buyer needs to pay only a certain amount at the time of purchase and the remaining amount at the decided date(s). The period generally varies from 6 months to 24 months, depending on the ‘loan’ amount, which is pretty convenient.
Such interest-free loans have undoubtedly boosted the economy by enhancing the purchasing capacity of consumers in a way. But since it’s a trend, one must not jump into it blindly. One must read the terms and conditions and agree to them only if it is suitable for them. People in Surrey and Vancouver can look forward to Debt Consolidation BC for any debt-related issues.