Buy now pay later schemes could create unwanted debt in the new year, experts warn

Lingering cost pressures continue to weigh on households going into the festive period.

Research published by the Competition and Consumer Protection Commission (CCPC) suggested that, during the Christmas period, the number of people planning to borrow has increased this year, while the average expected spend is down. Picture: Denis Minihane

Christmas has always come with price pressures but, with a lingering cost-of-living crisis and a fall in household savings, some experts are concerned consumers will tie themselves up in financial knots this year.

Dermott Jewell, advisor with the Consumers Association Ireland, said that he “appreciates very much that money of all kinds can be very tight this time of year” but warned against people entering into ‘buy now pay later’ schemes which are a form of credit.