Herts charity says the number of people using buy now, pay later is on the rise

Citizens Advice in Stevenage says the number of people turning to buy now, pay later schemes is on the rise as the cost of living crisis continues to bite.

What is a buy now, pay later scheme?

It does what it says on the tin. Instead of paying for a good or service in full at the checkout, a buy now, pay later scheme buys it for you, allowing you to pay them back in instalments over a couple of weeks or a month.

The main buy now, pay later providers include Klarna and Paypal, though there are others available.

While you won't be charged any interest and you won't occur a fee for using something like Klarna or PayPal, according to Citizens Advice Stevenage there are lots of potential dangers.

Some of the problems

Charlotte Blizzard- Welch is CEO of Citizens Advice Stevenage: "From our perspective, locally and nationally, buy now, pay later is a huge area of concern for us.

"They are a credit provider and they need to be regulated as one."

Funding and Projects Manager Melanie Bel Haj agrees: "People are assuming they're just spreading their payments over a longer period. While that is true, they're unregulated so they don't have to through ... any financial checks with the lenders. So it's very easy to take out multiple of these buy now, pay later arrangements.

"And with the introduction of groceries (Deliveroo just recently introduced a buy now, pay later option), and people feeling the pinch with the cost of living crisis, it's even more tempting to spread the payments.

"Then, before they know it, people have multiple monthly payments in addition to their priority payments such as rent, council tax, and fuel."

She continues: "So in order to keep up with the repayments for the buy now, pay later schemes, people are turning to family and friends, to pay day loans, and loan sharks. And a huge proportion of people are getting themselves into more regulated debt."

Help is available

While people are in a particularly difficult time, Ms Blizzard- Welch says help is available and urges people in need to come forward: "Our number one piece of advice, if you're worried about a bill, if you're worried you're going to fall into debt, if you're in debt, or just concerned about money, there is support available.

"Our strongest piece of advice is that you come forward early so we can help you re-budget, understand your household finances, and make sure you're on top of them as soon as possible.

"If in need, please do get in touch."

If you're in need of advice visit citizensadvice.org.uk