Research reveals attitudes to pay now, buy later deals and debt

The findings showed that just 11 per cent agree with the statement that ‘the UK has a healthy relationship with personal finances’. 54 per cent believe the government, business and media should do more to help people stay out of debt.

50 per cent of those questioned think buy now, pay later products tempt people to buy things they can’t afford and 45 per cent say they put people at risk of taking on unmanageable debts. 39 per cent say the terms and conditions for loans and credit are deliberately obscure.

Despite Financial Conduct Authority research showing one in three shoppers who take on buy now, pay later deals fails to repay on time, just 9 per cent of those questioned expect to incur interest or late payment fees on one of these products. Among 18-34 year olds, this falls to 5 per cent.

While fewer than 1 in 10 (8 per cent) think the quality of information on debt products is almost always clear and sufficient, 28 per cent want clearer, better information on buy now, pay later deals. 41 per cent say there is not enough information to help people avoid or manage debt.

48 per cent think young people are more exposed to the dangers of debt nowadays; this rises to 59 per cent among the parental generation of 45-54 year olds.

41 per cent of those surveyed say that money is going to be a big worry for them this year and 38 per cent agree money is a big factor in how content or anxious they feel. 18 per cent acknowledge that debt is a regular source of anxiety for them.

Just one in five respondents (22 per cent) feel better about their finances now than they did five years ago, while almost double that (41 per cent) feel more worried.When asked to rank money worries, the biggest concern is not having an emergency fund (27 per cent), followed by the amount owed on loans, overdrafts and credit cards (25 per cent). 14 per cent say they worry about having enough money to cover the basics of rent and council tax. 9 per cent have no worries about future finances.

Mat Megens, founder and Chief Executive Officer at HyperJar, said: “Wherever you turn, from your Twitter feed to online checkouts and ATMs, there’s a credit offer. Getting into debt is easier and more friction-free than ever. It’s one giant game of loans that we have to battle through every day. We’re trying to get back a bit of balance and give people a better way to plan and get on top of their budgets, however much money they have.”