Aussies flock to buy-now-pay-later schemes, but what are the risks?
Buy-now-pay-later schemes have taken off in recent years.
And with Christmas around the corner, financial products like Afterpay will be used by many shoppers.
A review by the Australian Securities and Investments Commission (ASIC) has found the number of consumers who use Afterpay has increased fivefold since 2015/16, with over two million people using the product over the last financial year.
The buy-now-pay-later model allows shoppers to purchase goods and services immediately but with staggered payments.
Michael McLaren is asking: “What are the risks and benefits?”
Associate Professor in retail operations and consumer behaviour at Queensland University of Technology Gary Mortimer says “it’s a good product if used responsibly”.
“But it’s very easy to get yourself into a bit of strife,” he tells Michael.
With almost a billion dollars in products and services in the marketplace yet to be paid for, Mr Mortimer says Aussie shoppers are holding “a lot of debt”.
Click PLAY below for the full story