Buy Now Pay Later (BNPL) services have surged in popularity, with around half of the population having used them at some point. Marketed as a convenient and easy way to shop, BNPL allows consumers to make purchases without immediate payment, giving them time to decide if they truly want the items. However, this seemingly harmless credit option has led to significant debt issues for many users. The lack of regulatory oversight from the Financial Conduct Authority (FCA) raises concerns, especially as BNPL is increasingly used for essential purchases rather than just luxuries. Research indicates that BNPL users are more likely to be financially vulnerable, often relying on this credit to cover bills or make it to payday. With the incoming Labour government promising to regulate BNPL, advocates urge for swift action to protect consumers from potential financial pitfalls associated with this growing trend.
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