Why Closing Your Paylater Is Your Best Financial Move?
Many ask, “Why bother closing it? It’s fine as long as I don’t use it, right?” In reality, psychologically, having a ready-to-use credit limit at your fingertips creates constant temptation. Paylater is designed to eliminate the ‘pain of paying’ (pain of paying). When you use cash or debit, you see your balance drop immediately, signaling your brain to stop shopping. With paylater, that signal vanishes, replaced by an instant dopamine hit when the package arrives at your door.
The psychological trap of ‘buy now, pay later’
The ‘buy now, pay later’ system exploits a cognitive bias called hyperbolic discounting. Humans tend to value instant gratification today more than long-term gains in the future. We feel like ‘Future Me’ will definitely have the money to pay, even though our financial situation isn’t always stable. This is why we often checkout items we don’t actually need just because there’s a 0% installment option or a cashback promo.
Fact: Percentage of US Generation Z consumers who utilized BNPL services in 2024. — 44 percent (2024) — Source: Empower
The hidden dangers of compound interest and sneaky admin fees
Don’t be fooled by the term ‘easy installments.’ If you’re even one day late, late fees and compound interest start piling up. Not to mention service fees or monthly admin fees that we often overlook when only looking at the principal installment amount. Compared to conventional bank loans, monthly paylater interest rates can be much higher when annualized. This is the main reason many young people are starting to prioritize the importance of an emergency fund over increasing their shopping limits.
Fact: Global Buy Now Pay Later (BNPL) market gross merchandise volume (GMV) forecast for 2025. — 560.1 billion USD (2025) — Source: Fintech Futures
Practical Guide: How to Deactivate Paylater Across Various Apps
If you’ve made up your mind, it’s time for the technical steps. Remember, simply deleting the app (uninstalling) won’t close your paylater account. Your account remains active, your limit is still recorded in the system, and the risk of data misuse persists. Here is the correct and permanent guide on how to deactivate paylater.
Main requirement: Settling all ongoing bills
This is a non-negotiable step. You won’t be able to close your account as long as there are remaining bills, even if it’s just one cent. Make sure:
- All installments are paid off (Status: Settled).
- No transactions are being processed (Pending).
- Late fees (if any) are fully paid.
- Turn off auto-renewal features if your paylater is linked to subscription services like streaming or music apps.
Removing payment methods vs. Permanently closing your account
Many people think that removing paylater from the payment method list in an e-commerce app solves the problem. In fact, those paylater accounts are usually managed by third parties (multifinance companies or fintech lenders). Here’s the difference:
| Feature | Remove Payment Method | Close Account (Permanent Deactivation) |
|---|---|---|
| Credit Limit | Still exists and recorded in SLIK OJK | Deleted/Closed |
| Account Access | Can be reactivated with one click | Requires re-verification/starting from scratch |
| Data Security | Financial data remains with provider | Data archived per regulations (safer) |
| Psychological Effect | Temptation remains high as limit is visible | Temptation gone as access is closed |
The concrete step in how to deactivate paylater usually involves going to the “Help Center” or “Account Security” menu within the app. Look for the “Delete Account” or “Request Credit Facility Closure” option.
Contacting Customer Service: The ‘ninja path’ that’s often forgotten
Often, the button to close paylater is hidden or made difficult to find (a dark pattern technique). If you’re struggling to find how to deactivate paylater through the settings menu, don’t hesitate to contact Customer Service (CS) directly via official email, in-app chat, or call center. Prepare your ID photo (KTP) and a clear reason, for example: “I want to permanently close my account to manage my finances better.”
Risks and Hurdles: What Can Go Wrong When Closing Paylater?
This process isn’t always smooth. There are technical things you need to watch out for so that no problems arise later. Understanding these risks is just as important as understanding the OJK credit score so your financial move doesn’t backfire.
Failed automatic billing (subscriptions)
Many of us link paylater as the primary funding source for subscription services. When you perform the how to deactivate paylater steps, make sure you’ve switched it to a debit card or e-wallet balance. If a bill hits a closed account, the transaction will fail, which could cause your service to be suddenly cut off.
Limit reduction in the same app ecosystem
Some large e-commerce apps have interconnected ecosystems. Closing the paylater feature can sometimes affect your internal score in that app, which might result in reduced special promos or lower limits on other features (like cash loans). However, for those of you who want to save more, this is actually a positive thing as it reduces reasons to overspend.
Repeated identity verification processes
For security reasons, providers will ask you to re-verify your identity (like a selfie with your ID) before closing the account. This is done to ensure that the person requesting the closure is truly the account owner, not someone else trying to ruin your credit profile. Don’t be lazy about following these procedures, as this is the final stage of a safe how to deactivate paylater process.
Real-Life Scenario: From ‘Checkout Junkie’ to ‘Savings Pro’
Let’s take the example of Andi, a 24-year-old private sector employee. Back then, Andi had a paylater limit of Rp 10 million. Every time there was a “double-date” promo, he’d always checkout a new gadget or shoes with 12-month installments. Unknowingly, his total monthly installments reached Rp 2.5 million, even though his salary was only Rp 6 million. After paying for his room rental, food, and installments, Andi had almost no money left to save.
Andi’s Story: Reallocating installment funds to automatic savings
After following the guide on how to deactivate paylater, Andi initially felt ‘tortured’ because he couldn’t shop recklessly anymore. However, he used a smart strategy: the Rp 2.5 million he usually spent on installments was redirected to automatic savings at the start of the month. Andi started learning how to track daily expenses to see where his money was going. In 6 months, Andi managed to save enough for a vacation in cash, without needing to go into debt.
Month-end balance comparison: Using Paylater vs. Debit
Here is an illustration of Andi’s financial difference before and after closing paylater:
| Component | Using Paylater | Full Debit/Cash |
|---|---|---|
| Net Salary | Rp 6,000,000 | Rp 6,000,000 |
| Paylater Installments | Rp 2,500,000 | Rp 0 |
| Cost of Living | Rp 3,000,000 | Rp 3,000,000 |
| Savings/Investment | Rp 500,000 (Remaining) | Rp 2,500,000 (Fixed) |
| Stress Level | High (Fear of billing) | Low (Calm) |
| Financial Status | Debt-Trapped | Building Assets |
From the table above, it’s clear that following the how to deactivate paylater process isn’t just about technicalities in an app, but about restructuring your future.
Alternative Strategies to Stop Being Consumptive
Once the account is closed, the biggest challenge is making sure you don’t ‘relapse.’ Living without paylater in a world full of ads is challenging, but very possible with a few of these strategies.
Applying the 24-hour rule before shopping
This is the most powerful technique to fight impulsive urges. Every time you see something you really want to buy, put it in the cart but don’t pay immediately. Wait for 24 hours. Usually, after a day passes, your emotions cool down and you’ll realize that the item isn’t actually that important. This is a preventive step after you’ve successfully executed how to deactivate paylater.
Use MoneyKu: Visualize spending in real-time
One reason we get trapped in paylater is because we don’t know exactly how much money we’ve spent. This is where MoneyKu comes in as your financial bestie. With MoneyKu, you can record every expense very quickly and easily.
MoneyKu’s top features to help you stay financially ‘sane’ include:
- Quick Logging: Record coffee or parking expenses in just seconds.
- Auto-Categorization: See if your spending is more on ‘Wants’ or ‘Needs.’
- Visual Summaries: Cute and clear charts (with adorable cat themes!) to show your financial health without making you anxious.
- Saving Goals: Turn your ‘shopping’ spirit into a ‘saving’ spirit. Create savings targets and see your progress every day.
By visualizing the money coming in and out, you won’t feel the need for extra credit limits anymore. You can get various budgeting tips for Gen Z directly inside the app to help your debt-free journey.
Building a ‘Saving Goal’ habit as an installment replacement
Instead of paying installments after buying something, try ‘paying’ them before buying. If you want a phone worth Rp 12 million, set aside Rp 1 million every month for a year. Besides practicing patience, you’ll also get much greater satisfaction when you finally buy it in full cash. Another benefit? You can often get extra discounts if you pay full cash compared to paylater installments.
Tanya Jawab Seputar Penutupan Paylater
Here are some of the most frequently asked questions by users when wanting to follow how to deactivate paylater.
Will my credit score be ruined if I close paylater?
Generally, closing a credit account won’t ‘ruin’ your score. In fact, having too many active credit accounts with high limit usage can give the impression that you are overly dependent on debt. Closing unnecessary accounts and paying off debt will improve your debt-to-income ratio in the eyes of the bank. So, don’t hesitate to follow how to deactivate paylater if it’s indeed a burden for you.
Why doesn’t the ‘deactivate’ button appear in the app?
As mentioned before, some apps deliberately hide this option. Try checking the Terms & Conditions (T&C) or FAQ section in the app. If you still can’t find it, use the CS chat feature or send an official email. Remember, as a consumer, you have the right to stop using financial services at any time.
Can I reactivate an account that has been closed?
This policy varies by provider. Some allow reactivation after a certain period, but many require you to re-register from scratch with a new data verification process. It’s best to think carefully before following how to deactivate paylater so you don’t regret it later.
How long does the account closure verification process usually take?
It usually takes 3 to 7 business days. During this waiting period, make sure you don’t make any new transactions using that account as it could automatically cancel the closure process. Ensure you receive an official confirmation email that the account has been successfully closed permanently.
What if I still have unused points or cashback?
Almost all providers will void points or cashback when you perform how to deactivate paylater. So, make sure you use or redeem all remaining points before applying for account closure. Don’t let small benefits get in the way of your big step toward financial freedom.
Conclusion: Living Freer Without the Burden of Installments
Following the how to deactivate paylater steps might feel tough at first, especially when seeing friends show off new items bought on credit. However, remember that peace of mind cannot be bought with 12-month installments. By stopping debt, you give yourself room to grow financially, start investing, and build a more solid future.
Don’t forget to always monitor your financial health every day. Use tools like MoneyKu to maintain self-discipline. With tidy records, attractive visualizations, and the right education, you will no longer be trapped in the vicious cycle of consumerism. Ready to hit that ‘Deactivate’ button today? Your small step today is a big win for your future self.
