There are many pitfalls of "buy first, pay later" in tourism, and we should be wary of these hidden costs!

Travel first, pay later. Are travel agencies so friendly now?

Travel companies are starting to offer a "buy now pay later" plan, which may seem tempting, but if your flight is delayed or cancelled, you may face refund issues.

Daniel Iraheta has been to many countries, but has never taken a cruise. While planning his recent trip, he encountered some loan options.

Iraheta said, "I think this is something I need to consider in order to make this trip happen. I'm really looking forward to this trip

The 'buy before pay' plan has become a popular way to pay for many goods and services, including household appliances and online shopping, and travel is becoming one of the fastest-growing categories.

Quick approval, no need for strict credit checks, and convenient installment payments seem to be the ideal way to pay for vacation expenses. But Consumer Reports warns that these loans are not always smooth sailing.

Lisa Gill from Consumer Reports said, "Unlike credit cards, buy first pay loans do not always provide the same consumer protection. If your trip is cancelled or delayed, getting a refund can be a nightmare, sometimes forcing travelers to pay for holidays they have never enjoyed before.

In addition, there are some details.

Although some 'buy before pay' plans do offer interest free payments - typically divided into four installments over two months - other plans also include regular loans with interest rates as high as 36%.

Therefore, please ensure that you have a clear understanding of the content you have registered for.

Gill said, "Some consumers end up paying unexpected fees or high interest rates, turning what was originally a very cost-effective transaction into an expensive purchase

Another issue is that if your itinerary is cancelled, you may still need to make the payment. If this situation occurs, it is recommended that you contact the "buy before pay" lender, provide evidence that the refund is in progress, and request a suspension of payment until the issue is resolved.

Iraheta said, "Sometimes you plan things and make plans. Although the plan doesn't go according to plan, it's always fun. You know, that's adventure. I call it adventure.

If you decide to book your vacation using the 'buy first, pay later' method, please take the time to read the details so that you won't encounter any unexpected surprises during your journey.

If possible, please book your trip with a credit card as it will provide you with more protection, including easier refunds and dispute resolution.

Another option is to set aside some money in advance for your vacation so that you won't be in debt when you return home.

Source link:

https://www.cp24.com/news/canada/2025/02/22/travel-companies-are-now-offering-buy-now-pay-later-options-heres-what-you-need-to-know/