I am averse to debt. I don’t have debt other than what I owe on my credit card which I use to pay for my bills, groceries, and other purchases.
Every month, I pay all the balances of my three credit cards. I only frequently use two credit cards: Tangerine Mastercard and Rogers Platinum Mastercard.
Last year, I bought a phone specifically Samsung Galaxy A54 5G for $493.49 (more details later on). This is my first Android phone.
The Buy Now Pay Later or BNPL for short is everywhere online.
It’s hard not to notice its tempting presence and benefits. And so with a click of a button, I made my first BNPL purchase. I am in debt for two years.
What have I done? Hear me out.
My action was intentional and with a purpose. There really is; you’ll see.
Why Did I Buy Another Phone?
If I already have a main phone (iPhone 14 Pro) then why did I buy another mobile phone?
My BNPL phone (Samsung A54 5G) serves as a backup phone at home and when I travel. When at home I use it for browsing and watching. But its main purpose is to become the ever reliable alarm clock.
I bought an analog clock before but it was alarmingly loud (pun not intended). The noise would make you forget where and what you are doing at the moment of waking up.
My heart was racing when I rushed to turn it off. I was half awake and half sensible not to throw the clock on the wall. No I am not a mad person trying to release stress by throwing things. But mini me may have done so.
On the other hand, my iPhone is retiring comfortably on a monitor stand. Unbothered and forgotten. My phone and I forget all about the distractions lurking inside this powerful and minuscule device.
When travelling, I intend to put a local SIM in the backup phone so I can use it for browsing and calling.
On my first solo trip to New York, I attempted to use it with an eSIM through Airalo. I failed.
I guess the effort and attention exerted weren’t enough for my excited and anxious brain. My heart wasn’t devoted either. I was excited to meet the Statue of Liberty for the second time. The first was in Odaiba, Tokyo.
Sometime next year, I’ll try again to install an eSIM through Airalo because I paid for it (CAD 11.42 for 1GB of data). I want to make it work before I go to another trip outside Canada.
For travelling in Canada, my 1GB data (per month in Rogers) is enough for using Google Maps, Agoda, and Klook.
Note: The backup phone doesn’t have email, bank, and other apps that I use regularly. But I do have apps for reading like Libby, Kindle, Kobo, and Calgary Public Library.
How Much Do I Pay Every Month?
It’s time to reveal the breakdown of expenses so you’ll know what to expect whenever you buy something through BNPL.
BNPL: PayBright by Affirm
Monthly interest: 0%
Plan Length: 24 months / 2 years
Payment Method: Chequing (pre-authorized debit / PAD)
Device: Samsung A54 5G 128GB
(not available anymore on the site probably replace by Samsung A35 5G)
Subtotal: $469.99
Discount: $120
Tax: $23.50
Shipping: free
Total: $493.49
Without Discount: $589.99
Monthly Payment: $20.56
Tip: There’s an option to pay the balance anytime. Do so if you can.
Every month I receive a text a few days before the monthly payment is deducted on my chequing account.
Once deducted, I then receive an email confirmation of the transaction.
I almost forget to mention that during the application and payment process, you’ll have to go through a soft credit check. This process determines if you qualified to take more credit and how much credit you can avail.
If I remember correctly, I qualify for $10,000 or 13,000 credit. It’s probably the latter. I was startled that I can shop for that much amount.
Can I use it for a cruise to Alaska? Even if I can, I’ll never squander a credit limit. A loan is still a loan I have to pay. I don’t want to bite more than I can chew. But I rather enjoy my day eating cake knowing I paid my all my monthly bills. Let’s toast tea to that.
I don’t think my credit score on Tangerine and TD were negatively affected. I still maintain high scores on both accounts.
TL;DR: Shop using Buy Now Pay Later plan that you can afford to pay every month.
Pros and Cons of BNPL
For me the pros outweigh the cons. But don’t take my word for it. Find out what I learned as a first-timer user of BNPL.
Pros
1 Low monthly payment with no interest. I currently don’t pay with my Rogers plan (talk and text and 1GB/month) on my main phone.
2 Brand new device with $120 discount. Shipping is free and I paid $23.50 tax (GST). There is only one tax in Alberta.
3 The Samsung A54 5G is compatible with eSIM. The only thing I need to figure out is how to make it work.
4 Realization comes with a price. I’ve been curious for a long time what’s the difference between iOS and Android phones. It turns out a lot of differences. In conclusion, I like the organization and simplicity of Apple devices.
And I’m OK to pay the price tag as I’m someone who use things till it retire or lost it. My stuff forget to break in the long run.
5 Freedom to choose a phone plan. This the biggest advantage of buying a phone directly from Samsung or other phone companies.
But I only use mine with Wifi for now. If my main phone suddenly break, then I’ll just swap the SIM to my backup phone. No hassle. No extra expenses.
Cons
1 No monthly cash back reward because I can’t use my credit card to pay the item.
2 Android phone requires a learning curve for iOS phone user especially if you’re stuck in Apple ecosystem which is not bad in my opinion. Just don’t upgrade whenever there’s a new phone, iPad, or Macbook. But it’s still up to you.
3 Additional expenses every month. In my case, I don’t pay anything on my phone plan but that doesn’t mean I can just get any phone.
Well might as well get the Samsung flagship phone like S24. I didn’t. A mid-range Android phone is enough for my needs.
The cons are negligible in my opinion especially if you have the freedom to choose a phone plan according to your needs and not to pay for outrageously priced new phone and data plan.
Who needs 50GB of data? Do you have to be online all the time?
Other Phones You Can Buy Through BNPL
Where else can you shop for a phone using BNPL? There are lots of online stores on which you can shop and pay later but come with fees and interest.
And no, I’m not shopping for another phone. But I’m interested in an e-ink phone that I can use for reading.
Apple (iPhone)
I’ve always used an iPhone because of ease of use. My non-techie mom doesn’t want to use another phone brand. I was tempted to buy an iPhone through financing but didn’t.
If I would, I’ll have to pay within 24 months with interest (APR). Clearly, I’m not interested so I don’t change every so often. I need to save little by little on my tech fund for a future phone. That’s still a long way to go.
Best Buy
On the site look for unlocked and Sold and shipped by Best Buy phones to avail the Buy Now Pay Later of Fairstone. You wouldn’t pay interest if paid in three months. Available phones include Samsung, OnePlus, and Google Pixel.
Open box and refurbished unlocked phones are cheaper and worth considering if you want to pay upfront the full price. No more monthly fees for the device so why not also avail a cheaper phone data plan.
Walmart
I bought a laptop at Walmart years ago and haven’t bought any device ever since. And I’m surprised of the plenty phone brands in different conditions (brand new, open box, and refurbished). You can buy it upfront or through a financing.
With financing, choose between Walmart Rewards Mastercard or Klarna. Setup fee applies with the former. So that’s another credit card to track. And another bill every month.
Amazon.ca
When I thought anything can be bought at Amazon.ca, I was surprised I cannot find a phone through financing. Some items are available through Affirm or choose to pay in full through credit or debit card.
However, if you are looking for a used item you can check out Amazon.ca Renewed or Amazon.ca Resale (Warehouse Deals). I’m confused.
What’s the difference between the two Amazon.ca branches. Which is better? Have you found a good deal for a used item that is still working?
Do you prefer to buy a new phone at the store or online and in what condition?
Looking at all these sites was overwhelming. So many used stuff for lesser price and yet companies keep releasing new models every year. (I’m looking at you Apple and Samsung).
How Did I Find Out the BNPL on Samsung?
I don’t subscribe to a lot of Filipino vloggers especially in Canada nor in Calgary. I only subscribe to one Filipino vlogger in Calgary: Beck and Cai.
Beck and Cai have two sons. They moved from a small town in Alberta. They are now Canadian citizens and vlog about their daily life in Calgary.
One day, I was watching one of their vlogs and Cai mentioned that she bought a Samsung phone through BNPL. No interest and low monthly payment.
It caught my attention. I asked few more questions and they immediately replied.
And then I immediately bought Samsung A54 5G when I also found out that it is $120 off the original price.
It wasn’t an impulsive buy. I made solo trip in Montreal and I was anxious of not having a backup phone.
So when the opportunity arise I bought a Buy Now Pay Later phone. Time to learn how to use an Android phone.
I didn’t like the file management of Samsung A54 5G. Is it only exclusive to Samsung phone or to all Android phones? I’m lucky I didn’t pay a premium price for dissatisfaction.
Lastly, I want to mention why I followed their vlog, from the time they are about to move out of their apartment to a new home, is because of their varying hobbies that I also enjoy doing and watching.
Beck and Cai both love succulents and gardening in general. They also like to travel to parks in and out of Calgary.
Beck is a collector of action figures and game consoles. He makes diorama and print and paint 3D figures. While Cai loves to cook and do grocery shopping. I like watching her grocery haul; sometimes, I see snacks that I tried and liked such as Chapagetti and Loacker Vanilla Wafers.
Try to spend an afternoon watching them and you’ll know what I mean to simply enjoy good vibes which is the common theme of their vlog.
Do you have a favourite vlogger in Canada or in the Philippines?
Final Thoughts
OK so I went on a tangent, from loans to phones to vlogs. We’ve finally reached the end of the post.
I had to make a separate post for some topics that I thought of while writing this blog post. The insights will be explained clearer in another post while not cluttering this space. I hope you find it helpful.
The BNPL just like other forms of debt like mortgage, car loan, line of credit, and HELOC . It is an ally to one’s personal finance if use accordingly. And if the concept is well understood.
More importantly: do NOT make it a habit to shop through BNPL plan. All the time.
Purchases adds up no matter how cheap or expensive the items are. It’s even more tempting to shop on sale items.
Have you tried using Buy Now Pay Later to buy something? Did you incur any additional fee like interest or management fee?
Share Your Thoughts