Buy Now Pay Later (BNPL) debts included on debt solutions have jumped by over 300% in the past six months, according to new data from debt advice provider Financial Wellness Group.
The average BNPL debt added to a debt solution is around £250 and customers will typically have more than one BNPL account (and in some cases up to ten).
Sebrina McCullough, Head of external relations at Gregory Pennington which is part of the Financial Wellness Group said: “We have seen a marked rise in customers with Buy Now Pay Later accounts amongst their debts over the past six months. This is a worrying trend whilst these point of sale loans may seem convenient, whether they are taken online or in-store, it is vital that appropriate affordability checks are in place, and that customers are fully aware of the terms and conditions of the loan that they are taking.”
“Very often these products are targeted at younger consumers at the point of purchase, with little time to really consider the pros and cons of paying later.”
“We’d urge consumers not to borrow more than they can easily afford to repay when spreading the cost of their purchases via Buy Now Pay Later and to check what interest and charges they could be liable for if they can’t afford the repayment.”