TEMPO.CO, Jakarta - The widespread use of ‘buy now, pay later’ schemes often lead to new problems, including piles of debt. The Financial Services Authority or OJK thus reminds the public that using the microcredit feature has its own risks if the debt is not repaid immediately.
The OJK spokesperson Sekar Putih Djarot shares five tips on how to avoid debt traps because of using pay later services, as follows:
- Limit the loan credit based on the repayment capacity.
- Understand the contract agreement fully.
- Repay installments or loans on time to prevent fines.
- Pay attention to the interest rate or service fee.
- Acknowledge the fine for late repayment.
Sekar explained that pay later service offered by marketplace or e-commerce is a collaborative product with financial service institutions. Each platform may partner with different institutions so they may have different business models.
In Indonesia, pay later service can be facilitated through several financial service institutions such as banks, financing institutions, and fintech peer-to-peer (P2P) lending. Its scheme is no different from credit card schemes.
The difference is that the pay later service offers a form of payment delay for a few days, monthly or weekly installments according to the nominal purchase. Basically, Sekar opined that pay later is a service for delaying payments or taking debt “that must be repaid at a later date.”
Sekar further appeals to the public having unusual experience regarding this service to immediately file a report to the OJK via a phone call 157 or WhatsApp chat at 081157157157.