‘The only avenue left’: Buy now, pay later used for food, bills
As cost of living pressures bite with high inflation and rising interest rates this week, credit products were seen as “the only way to meet their needs”, the report found.
Financial counsellor Peter Thompson, from the Financial Rights Legal Centre in Sydney’s Surry Hills, said many of his clients used buy now, pay later to buy Coles and Woolworths vouchers to get groceries.
“It’s not just low-income earners either. As people prioritise other payments like the mortgage and school fees and as they’ve maxed out credit cards, unlicensed credit is the only avenue left for them,” he said.
“There are people with seven-figure mortgages who are using buy now, pay later for their living expenses.”
Financial counsellor Peter Thompson said many of his clients used buy now, pay later to buy Coles and Woolworths vouchers to get groceries.CREDIT:NICK MOIR
Thompson described buy now, pay later as “fingernail credit – it’s the last desperate attempt to hang on”.
One female consumer surveyed said: “When you need a spare $100 for groceries, it really comes in handy.” Another said: “It just got me further behind in the end, so it really wasn’t worth it. It became an extra bill which I couldn’t afford.”
