As Valentine's Day approaches, many people are starting to plan their celebrations. Whether it's buying flowers, jewellery, electronics, indulging in romantic dinners, or arranging spontaneous trips, these expenses can add up quickly. To keep costs manageable, some may choose Buy Now, Pay Later (BNPL) services or credit card instalment plans to spread payments over time. So, what sets Buy Now, Pay Later apart from conventional credit card instalment plans?

Some people may mistakenly think that "Buy Now, Pay Later" is a payment option, but it is indeed a credit product, just like credit card instalments. Typically, Buy Now, Pay Later offers instant approval and is designed for smaller purchases with shorter repayment periods. It is often interest-free and does not charge handling fees, though late payments will result in additional charges. Credit card instalment is also a credit product. After obtaining a credit card from a bank, consumers can convert their purchases into instalment payments. Banks will apply instalment interest or handling fees, and late payments will also incur extra charges. Additionally, some loan products or credit/debit card instalment plans may offer BNPL features, but these products may have different terms and conditions, interest and charges.

Instalment payments certainly offer greater flexibility when shopping, but without careful management, they may result in overspending or even debt problems. Before using instalment services, evaluate your ability to repay and thoroughly review the terms and conditions. Always remember, only borrow what you can afford to repay!

Besides, celebrating Valentine's Day doesn't necessarily require lavish gifts or costly outings. With some creativity and thoughtful preparation, you can set a wonderfully romantic mood without overspending. Take reference of the IFEC “Financial Tips for Valentine’s Day” to help you organize an unforgettable and meaningful celebration!