A study by Money.co.uk shows that the ‘Buy Now Pay Later’ (BNPL) schemes are alluring shoppers into taking unsustainable debt.
The young shoppers are lured by the advantage of deferring the payment for small ticket items, while they end up spending more than they can afford.
The finding reveals that almost a fifth of UK shoppers are ending up spending more than what they can afford because of BNPL schemes as they provide an opportunity to purchase now and worry about it later.
The fast fashion retailers Nasty Gal, Boohoo and Pretty Little Thing rank among the leading three brands for BNPL, with Next, Nike, Levi’s, adidas and Asos also finding place in the top 10.
The average debt to BNPL platforms is 176.05 pounds, and it takes 8 months to repay.
The reason that promotes the process is the quick and easy sign-up process, minimal credit check and youthful marketing appeal that cause the shoppers to easily buy the products and make the payment later.
