A QUARTER of young people making Buy Now Pay Later repayments haven’t been able to pay for food, rent or bills as a result, Citizens Advice has found.

New research from Citizens Advice shows 45% of 18 to 34 year olds in the UK have used Buy Now Pay Later in the last 12 months.

Alarmingly, half of these did it without realising and one-in-three went on to regret it.

Buy Now Pay Later is often advertised at online checkouts as an easy way of splitting or delaying payments on items such as clothing or electronics, with incentives like it being ‘interest-free’.

But Citizens Advice fears for many people it can be a slippery slope into debt.

Overall, 27% of UK adults have used these firms in the last 12 months, rising to 37% of disabled people and 45% of people with a mental health problem.

Citizens Advice believes Buy Now Pay Later firms must overhaul their checkout processes, to ensure shoppers aren’t encouraged to spend more than they can afford, and improve affordability checks.

Customers must also be treated fairly if they are struggling to repay.

It shouldn’t be possible for people to sign up for credit without realising, and the fact this is happening so often signals that a drastic overhaul is needed.

This industry more than trebled in 2020, and while these products work for many shoppers, the regulator has rightly recognised the potential for harm.

It must ensure robust consumer protection keeps pace with changes in how we shop.

Alistair Cromwell

Acting Chief Executive of Citizens Advice