Summary
Abi, a single mother from Sheffield, has accumulated £3,000 in debt by using buy now, pay later (BNPL) services to purchase essentials like groceries and school uniforms. Many people in the UK are increasingly reliant on BNPL services, which allow consumers to spread payments but can lead to debt if payments are missed. Starting next year, BNPL apps in the UK will be regulated with stricter affordability checks.
Key Facts
- Abi is a single mother who owes £3,000 due to using BNPL services.
- BNPL services let users pay for items over time without interest, but missing payments can lead to debt.
- About 1.6 million people in the UK used BNPL services to manage household bills last summer.
- Debt advice organizations report a rise in people seeking help with BNPL-related debts.
- All BNPL services in the UK will face regulation next year, requiring more thorough financial checks.
- Abi uses multiple BNPL apps for everyday items like bus passes and pet food.
- Debt relief orders can freeze debts for 12 months and potentially write them off, but impact credit for six years.
- The cost of living, including a 37% rise in food prices over five years, contributes to increased BNPL usage.
