Gen Z spend a fifth of their disposable income on 'Buy Now Pay Later' repayments

dailystar.co.uk:

Gen Z are being disproportionately impacted by “Buy Now, Pay Later” (BNPL) products, and end up spending a fifth of their disposable income on repayments.More than a quarter (29%) of young adults are concerned about their ability to pay back what they borrowed, and 8% have even been contacted by debt collectors.Another 44% are left feeling overwhelmed by their repayments, according to a poll of 2,000 UK consumers who have used BNPL products.It also emerged 12% of 18- to 24-year-old BNPL users have seen their credit score impacted, and half regret using unregulated BNPL altogether.A separate poll of 2,000 parents with grown-up children also found 66% are concerned about them using BNPL, with over three-quarters (77%) supporting calls for tighter regulation of the sector.And among parents whose grown-up children have already used BNPL, more than a fifth (22%) have had to bail them out.Antony Stephen, CEO of Barclays Partner Finance, which commissioned the research, said: “Rising inflation and energy bills are contributing to the growing cost of living crisis.“This makes it much harder for consumers, particularly those in financially vulnerable groups, to stay on top of spending, and many are drawn to BNPL as a way to maintain their current lifestyle.“As things stand, newer BNPL products are not subject to the same regulation as more traditional credit agreements.“With many providers, consumers are not even given a detailed affordability assessment, and the credit reference agencies are given no visibility of the loans that are dished out.“That’s a problem, because it allows consumers to get into unmanageable and overwhelming levels of debt - an issue that our research shows is hitting Gen Z shoppers particularly hard.”The.