Credit Chains of Convenience: The Subtle Enslavement of Pay-Later Temptations

Nowadays, there is a shortcut for everything. Take the case of shopping. If the price of something is high, then there is no need to worry about it, because there is an option of 'pay later'. Buy first and pay later. It sounds very easy and attractive. But the truth behind it is not visible to everyone. People think that this is an opportunity for them, but often this facility becomes an invisible trap. Everyone is fond of shopping, and whenever the price of a product seems high, Buy Now Pay Later seems like a tempting offer. People often think that when they need to invest money in a brand, they should buy it immediately. But the problem starts when the time for payment comes.

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Monthly installments seem small. But when we add them up, the amount turns out to be quite large. Sometimes interest is also charged if payment is not made on time. The biggest problem is that EMI creates an illusion in people's minds that they have money when in reality their budget does not allow that thing. Payment gets delayed at a clip and we shop without thinking. This habit gradually turns into a habit of over pending and by the time we buy not one but two but many things on EMI, the pressure of the month increases. EMI starts giving burden and stress. Another problem is that people do not read the terms and conditions of EMI properly. Sometimes there are hidden charges. The structure of late fees is complicated and the interest rate is also not clear to them.

By the time one understands it, it is too late. The level of financial literacy is still not so strong in India and this company is improving its benefits. Scratch on attractive offers, cashback, and instant approval, everything is so smooth that the consumer does not get time to think about anything. EMI is a new credit system that is different from the traditional credit system, but its effect is just as strong. When you repeatedly default on payments, it affects your credit history. Many EMI providers report your credit score if you default. This means that if you apply for a loan or credit card in the future, your score may become weak. In the pursuit of today's happiness, tomorrow's possibilities are put at risk. It is also true that people spend emotionally.

Whenever there is sadness or stress about something, people seek happiness through shopping and it seems to be their support system at that time, but that happiness is temporary, which ends when payment reminders come and the account balance goes negative. Then both guilt and regret come together. Then the thing that is the reason for happiness becomes a burden. Many times EMI is misused. People do not buy EMI after careful consideration. They buy it just because they are at the bus stand or because of their friends. Many students or jobless youth also fall into this trap. They think that they will see when the income comes. But by then their debt increases so much that it becomes difficult to ask for it. Financial dependency starts increasing and then mental health also starts getting affected. Social media and influencers also promote the system.

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In their sponsored posts, it is shown that EMI is a smart choice, but they never tell what happens if there is a default and what all these benefits are. In today's time, financial freedom has become an illusion. Where people are moving in the chain of actual debt just by looking at the fees. Any new financial tool should be used wisely. It is fine if it is used in times of emergency or with a planned budget but when you use it for impressive shopping or to show off your status then it becomes your biggest enemy. Every time new offers come up and products get tempting you find it to be a solution to temptation your cravings but it is only a short-term relief. Parents and schools should focus on financial education.

Today's children and youth are learning everything through online platforms, but there are very few sources to learn financial discipline. Until people understand the value of money and the importance of budgeting, it is difficult to avoid such trips. It can be a helpful tool at the wrong time. But when it becomes a habit, it will impact every aspect of life. When we think about features, the role of savings and investment is very important, but tools like EMI eliminate the concept of saving for the day. You already have to deduct a large part of your salary and save for the upcoming payment, so there are no savings left for an emergency. Then you have to take a personal loan.

In today's digital era, everything is like this. In one click, your account is linked. In one click, you place the order and the EMI option is selected by default. All these integrations are designed so that you make quick decisions and spend money without thinking. This is a misuse of consumer physiology. Companies know how you react on impulse, and they exploit that. Many times, people start buying more than they need because of money. They want one shirt but after seeing the money options, they order three. When the bill for money comes, they believe that only one is needed. This pattern starts repeating and then the calculation of money goes wrong. Monthly income comes and goes only in payment. Nothing is left for oneself. Its impact on mental health cannot be estimated.

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When there are reminders all the time that the bank balance is low and one has to ask for money from friends and family, then self-esteem suffers. People feel degraded by their decisions. They blame themselves. This gift cycle is harmful. It can become the reason for financial stress, anxiety, and depression. Especially when you are not able to tell anyone how much pressure you are under. Financial freedom does not mean that you have to afford everything, but it means that you spend money wisely. You should secure your future.

There is an option from EMI. The solution is to do it when it is needed. If you keep a little control today and can be a little patient, you will be happier tomorrow. Life is a long race, and steps need to be taken with planning. A financial decision taken in a hurry can hinder your progress. Migration seems to be a shortcut to a new world but every shortcut cannot lead to success. Sometimes this shortcut makes us wander.

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Posted Using INLEO