Credit Action: Be wary of buy now, pay later

Consumers need to take care with buy now, pay later deals, according to one expert.

Chris Tapp, director of Credit Action, warned that while they can be a good way for people on low incomes to purchase expensive products, they can also lead to expensive debt.

“People do need to know exactly what they are signing up for, what their rate of interest is [and] how long it is going to take them to pay that off,” he remarked.

Mr Tapp added that there are definitely some good deals out there, but people just need to be careful that they do not end up paying significantly over the odds in the long term.

His comments follow a statement from the Financial Leasing Situation that suggests people are continuing to hunt for best value deals amid the economic downturn.

It revealed that in-store credit rose by 24 per cent year-on-year in March to £230 million.

By Chris Trimble