Many young adults are turning to Buy Now, Pay Later (BNPL) services to manage their finances, but this trend comes with significant risks. Individuals like Darius Ng and Nurin Insyirah Yusran use BNPL to ease the burden of large purchases, but they also acknowledge the potential for overspending. Financial experts warn that while BNPL can help with cash flow, it may lead to a habit of accumulating debt, particularly among young users who might not yet have developed strong financial literacy. Strategies like the 50-30-20 budgeting rule can help users maintain balance in their spending, but many still find themselves in precarious financial situations. The Monetary Authority of Singapore has implemented safeguards to protect consumers, but the responsibility ultimately lies with users to track their expenses and avoid impulse buys. As BNPL continues to grow in popularity, the importance of financial discipline and awareness becomes increasingly critical to avoid falling into a debt trap.
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