'Buy now, pay later' deals could spur need for debt advice
'Buy now, pay later' deals could spur need for debt advice
Thursday 28th May 2009
Figures from the Financial Leasing Association (FLA) recently showed that the amount of money owed by consumers through these deals has increased as a result of the harsh economic situation.
The FLA said that many consumers were keen to find good value during the credit crunch but the market remains tight and things such as in-store credit, which accounts for 1.5 per cent of the lending market, are increasing.
As of March 2009, in-store credit had risen by 24 per compared with March last year and by nine per cent in the year ending in March, figures from the organisation showed.
Reacting to this news, Credit Action director Chris Tapp said consumers must look carefully at all the offers out in the market as there are some really good deals as well as bad ones.
"Some of them are expensive deals particularly when you actually start to look at deals [which] affect your insurance costs, especially the buy now, pay later deals which are aimed at people on lower incomes," he explained.
"People do need to know exactly what they are signing up for, what their rate of interest is, how long it is going to take them to pay that off, and how much money they are going to end up paying."
According to data from Credit Action, 33,600 applications for credit have been turned down every day during the past six months and Citizen Advice Bureaus deal with 7,241 new debt problems every day.
News article brought to you by DebtSolver – The debt advice company.
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