Monday 1st of June 2009
Buy now, pay later deals could lead to an increase in debt problems, an expert has suggested.
Chris Tapp, director of charity Credit Action, explained that consumers take advantage of store’s credit offerings because they cannot afford to buy an item upfront.
However, he noted that there is a risk that difficulties in meeting repayments will be encountered, which could lead a the need for solutions such as debt management programmes.
According to Mr Tapp, contacting creditors is an important first step for anyone with debt worries.
"As soon as you get into struggle, you need to let them know exactly what the situation is, to see if you can come up with some type of arrangement," he remarked.
The advice follows Financial Leasing Association findings that in-store credit agreements were up 24 per cent in March, compared to a year earlier.
Such deals were shown to account for 1.5 per cent of the credit market.
