Buy-now-pay-later lenders such as Klarna have taken the UK retail sector by storm in recent years. Now in a cost of living crisis where finances will be tighter than usual for most amidst rising utility and food bills, the offer to put off paying for non-essential items is more enticing than ever. It is little wonder that Citizens Advice estimated at least one in ten people used these lenders last winter.
Buy- now- pay- later is made all the more attractive by many companies offering borrowing with zero interest. However many of these lenders can often charge extortionate late and missed payment fees which when added to the balance can make repayments a whole lot harder and contribute to a cycle of debt. Despite a review of the sector by the government earlier this year warning of the risk to consumers and by calls from MPs to regulate the sector, no further action is likely to be taken until next year at the earliest. Meaning many more consumers run the risk of falling victim to some of the worst practices of this sector over the coming weeks and months.
If you are looking for advice on how to deal with buy-now-pay later debts you can you can browse this website for advice and information. Alternatively you can use the chat function to speak to a qualified money advisor to find out what help may be available to you or contact your local advice agency.