American Express launches Buy-Now, Pay-Later service that changes the way a credit card works.

With people under financial pressure during these challenging times, many are turning to what are known as “Buy Now, Pay Later” services to make their purchases.

Companies like AfterPay and ZIP are going gangbusters offering a new take on the old Layby – allowing people to get the goods and pay it off over a few weeks or months.

If you’ve already got credit, the other option to you is putting that purchase on your credit card, however, unless you are diligent enough to pay it off fast, you are paying more through interest payments over time.

Enter Plan It – American Express’ new instalment based program for AMEX cardholders.

It’s really quite simple, and the costs are transparent.

You get your AMEX statement, and via their app, you choose a portion of your balance, perhaps the value of that shiny new thing – to be paid off over three, six, nine, or twelve months.

Over that period of time, you pay no interest on that amount, you do pay a smaller monthly fee.

I am not a financial expert – let’s be clear on that, but if you can’t pay your balance, then taking a chunk and paying it off over 12 months, with a monthly fee (around $7.30) is going to be beneficial.

Austin Huntsdale from American Express says “Australians are looking carefully at their personal finances. They’re planning more diligently to be able to absorb unexpected expenses. Life’s a bit different now, and customers want more control over their finances. Plan It is one of the ways we can help our Card Members gain that control,”

Web: American Express