Debt warning over fears impulse purchases fuelling rise of Buy Now Pay Later | Personal Finance | Finance [Video]

The cost-of-living crisis has seen buy now pay later (BNPL) overtake payday loans as the credit option of choice for the masses.

Virtually every major retailer now offers BNPL at their online tills, which can make buying that perfect pair of shoes, coat or computer console seem easy and affordable.

However, the net effect is that many young adults and people with mental disabilities are taking on debt without any proper checks on their ability to make repayments.

BNPL as a form of borrowing is now three times as popular as payday loans, while it is catching up with credit cards.

Details of changing spending and borrowing trends have been revealed in Lenvi’s 10^th borrowing report. It also identified a growing demand for lifestyle lending which covers things like ‘Botox borrowing’, and so-called ‘influ-lending’, where famous faces use social media to promote financial products.

Lenvi operates lending technology for the likes of Barclays, Santander, Metro Bank and Admiral.

It …