More than two in five buy now, pay later (BNPL) customers borrowed money to make repayments, Citizens Advice has found, fueling fears of a looming credit crisis among cash-strapped consumers. Younger shoppers were most likely to borrow to pay off BNPL purchases. The types of borrowing included overdrafts, borrowing from friends and family, loans and payday loans.
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Consumers racking up more debt to pay off BNPL loans
“The spiral of debt from buy now, pay later to credit cards, loans and even payday lenders shows it’s not a risk-free alternative. buy now, pay later is part of the credit industry and must urgently be regulated as such.”
