Martin Lewis spoke on Good Morning Britain this morning about the dangers of the debt 'marketed as a lifestyle choice'
Martin Lewis has said that people are using the Buy Now, Pay Later option as a "lifestyle choice" rather than what it is, getting yourself into "debt" - and it's something that needs to be stopped, he warns.
However if something goes wrong, finance experts are warning users that they could incur late fees and marks on your credit file. Talking about the "explosive growth" of Buy Now, Pay Later debt, he recalled payday loans and said that the treasury committee in 2020 were warned they can't make the same mistake . So when a new form of debt grows, "we need to regulate it sooner rather than later", he urged and despite talks four years ago, nothing happened to regulate it.
"But Buy Now, Pay Later, which is you ubiquitous when you shop online you're asked 'Hey, do you wanna spread the payment?" which should really be phrased 'Hey do you want to get into debt' because it is a debt", he stresses. "It’s not necessarily a bad thing, it's interest free and if you got a plan budgeting one off purchase that you need to make for something like paying for emergency plumber or car repairs, well use it to spread the payment.
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