How To Make Amazon’s Monthly Payment Plans Work in Your Retirement Budget

On July 16, the first day of Amazon Prime Day 2024, 7.5% of shoppers used buy now, pay later plans to afford the things they wanted or needed during the big sale. Adobe Analytics data revealed that this represented a 17.1% uptick compared to last year.

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While people across demographics use BNPL programs as a way to add flexibility to their budgets, these programs can work particularly well for retirees on fixed incomes. Even if you have retirement income other than Social Security to draw from to make ends meet, you still might need to rely on credit to cover necessary expenses. BNPL programs let you do that without having to resort to credit cards.

Amazon offers two payment plan programs, along with a layaway plan. None of these programs require a credit check.

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Pay Over Time With Affirm

Affirm is a BNPL program with interest rates ranging from 10% to 36%, although you’ll occasionally find a promotional 0% offer. No credit check is required, and you can find out if you qualify within seconds.

Payment terms vary based on the product’s price. For purchases of $50 or more, you can choose to pay over two months (four bi-weekly payments) or six months. Purchases over $100 offer the option of stretching payments out over 12 months. Payment terms increase from there, up to 48 months for a purchase of $1,500 or more.

Affirm is available for millions of items on Amazon, including electronics, home goods, furniture and appliances.

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Amazon Monthly Payments

For those who qualify, Amazon also offers interest-free, no-fee monthly payment plans. However, these plans are only available on certain items and may not be available to every shopper.

If you qualify, you can pay off your purchase in equal monthly installments, the number of which you’ll see in your offer, with the first payment due at the time of purchase.

You’ll need to keep a valid payment method on file for Amazon to charge the payments. You can pre-pay your installment plan at any time, with no penalties.

It’s important to note that Amazon can suspend or terminate your account for non-payment. If you’ve used the plan to purchase an Amazon device, such as a Fire TV, Amazon can deregister the advice, blocking your access to content, if you fail to make a timely payment.

Amazon Layaway

Finally, Amazon offers a layaway plan for purchases that you don’t need immediately. You can use Amazon layaway to start Christmas shopping early or pay for a large birthday present over time, prior to the event.

To use layaway, put 20% down and then make four more payments over eight weeks. If you receive your Social Security checks monthly, you can essentially spread the payments over three checks. You’ll pay no interest or fees. Your item ships after you make the final payment.

Final Note

Borrowing money for purchases isn’t ideal, but there’s no reason you should sacrifice the items you need — or want — as long as you budget carefully. Amazon’s payment plans make it easy to make purchases today, especially when the items are on sale, and pay over time.

This article originally appeared on GOBankingRates.com : How To Make Amazon’s Monthly Payment Plans Work in Your Retirement Budget