Bubble Trouble Toil & Trouble…. Dangers of the ‘Opaque Debt Bubble’….

Consumers have a stark warning not to be so easily lured into the ‘Buy Now, Pay Later’ option as debts are rising amongst consumers who are not potentially analysing the implications of the ‘on hold’ style debt. Whilst it may seem attractive at the offset a lot of consumers are not able to pay the instalments as per the arrangement and are finding themselves being chased by Debt Recovery Agents.

UK shoppers rack up £4.1bn debt in ‘buy now, pay later’ deals Rapid growth of sector raises alarm about consumers becoming trapped in ‘opaque debt bubble’ A growing number of companies such as Klarna, Clearpay and Laybuy allow customers to stagger payments for products such as clothes, footwear, and beauty items. UK shoppers have racked up more than £4bn in outstanding debt so far this year after taking advantage of “buy now, pay later” deals during the pandemic. 7.7 million Britons have accumulated “significant” outstanding balances with buy now, pay later (BNPL) companies averaging £538 for each user, according to Credit Karma, a financial website that offers people access to their credit score and credit report. The findings come days after the government announced that tighter regulation of the multibillion-pound BNPL industry was on the way amid concern among regulator...

https://www.theguardian.com/money/2021/oct/26/uk-shoppers-4bn-debt-buy-now-pay-later-deals