This advertisement (on the right) popped up on my facebook feed this time last year and I've seen other ads that are similar.

It looks like a life line... it looks like an interest fee payment plan - but you need to be VERY careful when using these services.

Here are 3 reasons why:

1. A credit enquiry - Applying for these services will flag as a credit enquiry on your credit record. This can have an adverse impact on your credit record.

2. If you happen to miss a direct debit/payment (even by accident) it will flag/impact on your credit history.

3. Even if you meet all of your requirements and all of your payments, using Afterpay/Zip will most likely be seen poorly by banks when you apply for a mortgage as these deferred payment options make it look like you can't meet your living requirements.

I know it can be a tough time and getting the kids back to school is expensive but please think through the ramifications of using these services. They use fun, vibrant marketing - they make their service all about the convenience - but remember, there's no such thing as a free lunch and they're not a charitable service.

What looks like a shining light most likely has a darker underlying foundation...
Please be careful. There endeth the lesson...eth...