Britain COST Britain

A third of UK ‘buy now, pay later’ users say they can’t handle payments

Reading now: 813
theguardian.com

Almost a third of shoppers who use buy now, pay later credit say repayments on the loans have become “unmanageable”, with the cost of living crisis pushing them into a debt spiral, new research has found.Consumers are spending more via the controversial form of credit, with shoppers who use BNPL now paying off an average of 4.8 purchases – almost double the 2.6 purchases in February, the research found.

The average BNPL user’s outstanding balance currently stands at £254. Barclays Bank and the debt charity StepChange said this was “concerning” because 30% of Britons have used BNPL to buy goods, and of these, almost a third (31%) saying the lending had got them into problem debt.The research also found that for retailers that offer BNPL, the form of lending is expected to account for almost a quarter of their sales by the end of this year.BNPL lets shoppers stagger payments for items such as clothes and furniture with no interest or charges – unless they fail to pay back on time, at which point some firms impose late fees.

Read more on theguardian.com
The website fvbb.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News

DMCA