Deferred Payments (Buy Now Pay Later)

What would you guys recommend as the best method to handle a deferred payment type transaction.

I've just bought an Air Conditioning unit, £500, on a store card. The offer is 6 months buy now pay later. If paid within the 6 months, then there will be no interest to pay.

I have sufficient money in other savings categories to have paid it in full, but thought I'd rather keep it in my accounts earning some interest and take advantage of the 0% offer.

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  • It’s pretty basic. Just make sure to pay it before the interest kicks in. I’d do 100 a month to be safe and then pay it off as soon as 500 accrues.

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  • Thanks. Forgot to add that the question was more how do I handle the category balance. If I enter the transaction now (as it's now on the card), the category would go yellow, even though I've set up a goal to fully fund it by the time its due.

    It's due on 13th Feb, so I've set the funding goal for 1st Feb.

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      • dakinemaui
      • dakinemaui
      • 2 mths ago
      • Reported - view

      Richard Holland The category is initially yellow to warn you have no funds reserved to pay off the debt incurred. (Hardly a surprise, as that's why you're financing.)

      If you will not be able to budget toward this category before the 13th, you should set the target date for the previous month.

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      • MXMOM
      • MXMOM
      • 1 mth ago
      • 1
      • Reported - view

      Richard Holland I actually didn’t set up the purchase and debt in YNAB. I created a category called appliances and I set a goal to have it budgeted to the balance due by the payment due date. I actually did the date for the month before just to make sure I don’t miss the date. 

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