The latest edition of the FMA’s consumer information series “Let’s talk about money” which was produced jointly with Schuldnerberatung (the Austrian umbrella organisation for debt counselling services), urges people to exercise particular caution over “Buy now, pay later!” financing offers. Paying by credit card, payment in instalments, payment holidays, purchasing on account, or simply overdrawing your current account, generally are not only expensive forms of financing for current consumer wants, but also carry the danger that the consumers can easily lose track of their actually financial situation. In addition, the brochure (in German only) also warns about hidden fees as well as extremely high additional costs in the case of missed payments.<\/p>
The FMA and Schuldnerberatung therefore recommend consumers to pay for everyday consumer goods, in particular clothing, mobile phones and consumer electronics straightaway in cash, to stop them from losing track of their actual financial situation. The danger of this happening particularly exists in the case that consumers use different ways of deferring payments at the same time. In addition, the brochure also provides useful tips that can help consumers to keep their expenditures under control. In the case, however that missed payments, exploding costs and debt collection arise, both institutions advise contacting the one of the free state-recognised debt counselling services – such as www.schuldenberatung.at – without delay. The quicker such action is taken, the quicker and better assistance is able to be provided.<\/p>