Don’t fund last-minute Christmas gifts using buy now, pay later. Here’s why…
One in ten Buy Now, Pay Later shoppers have been chased by debt recovery agents, says Citizen’s Advice, with more and more people getting into debt and struggling to pay for food and bills and buying presents instead.
However, many consumers regretted using the likes of Klarna to fund their festive frivolities without having the money to pay for it in January.
Christmas can be a ‘slippery slope into a debt.’ Here’s why you should avoid it when rushing around for those last-minute Christmas gifts.
Christmas and the Slippery Slope into Debt
With Christmas fast approaching, 27% of UK adults have used the likes of Klarna to fund their Christmas shopping, with that figure expected to rise in the coming days before the festive season reaches its climax.
The average person repays around £63 a month on Klarna- and PayPal-like loans, however that figure can almost double during the Christmas period. Amazingly, however, many people didn’t think it was “proper lending’ when asked the questions, whilst a further six million didn’t fully understand what they were signing up for.
Furthermore, around four in ten of those who’ve used Buy Now, Pay Later schemes and Klarna, for example, are already struggling to repay ongoing debts, therefore compounding the problem at Christmas.
Christmas and Quicksand Debt
Alistair Cromwell, acting CEO of Citizens Advice said: “Buy Now, Pay Later borrowing can be like quicksand – easy to unwittingly slip into and much more difficult to get out of.”
And here at Cobra, we couldn’t agree more.
Millions of online shoppers have been clicking Klarna’s buttons to spread their festive payments. That said, with January already rearing its long and undesirable head, fears are growing amongst users that they don’t have the money to pay their outstanding debts after Christmas.
And so, with almost one week to go before Christmas, you need to ask yourself this: is it truly worth being saddled with unnecessary debt for the sake of a few extra Christmas presents.
Unfortunately, the popularity of the likes of Klarna has meant a lot of people this Christmas are not only becoming first-time borrowers, but they are also accumulating debt in the name of impressing people during the holidays.
Trust The Debt Recovery Experts this Christmas
Established in 2009, our specialist private debt recovery team are experts in the field of Buy Now, Pay Later debt recovery. Ahead of an expected crackdown on the payment market, we are expected to be recovering a wave of Klarna-related debts in the new year.
With over 75 years’ combined experience in the industry, we know how to recover Buy Now, Pay Later debts. And, if your debt is over £1,000, we can act almost immediately when it comes to recovering a debt of any size over the threshold.
That said, if you’re a small business and are owed money and want to get it back, take decisive action and instruct Cobra today on 0151 526 4222.
You can also email us at admin@cobrafinancial.co.uk
