Travel now, pay later schemes have been around since 2001 but the number of customers who opt to pay for their travel packages in interest-free instalments has spiked over the past year, said travel agents.

This is how the credit scheme works: Tour agencies team up with major banks to offer the instalment payment plans. The banks pay the travel agencies the full amount of the tour packages and collect from travellers in monthly instalments.

Read the full report in Tuesday's edition of The Straits Times, Life!.