One in six (15%) Britons currently owe money through buy now pay later debt.
As part of the new 2022 Household Debt Report, NerdWallet surveyed 2,000 UK adults aged 18plus. The women polled (20%) are more likely than the men (11%) to use BNPL options, such as Klarna, Clearpay or LayBuy, to spread the cost of purchases over a number of months.
The research also found that 17% of those using the schemes had done so for interiors or home improvement purchases.
The results also revealed that over one in five UK consumers aged 25-34 and 35-44 (22%) currently owe money to a BNPL provider, whereas just 7% of UK consumers aged 65 plus are currently in this form of debt.
The report found that more than two fifths (45%) of Brits currently consider themselves to be in some of financial debt (not including mortgage debt or student loans);
Debt accrued through credit cards remains the most common form of borrowing, with more than two fifths (42%) of Brits polled admitting to owing money through credit cards;
Over one fifth (21%) of Gen Z’ers aged 18-24 claimed to have £600 to £700 worth of debt; one in eight (12%) owe £700 to £800, and almost one in six (13%) are already carrying more than £1,000;
Almost half (47%) of respondents currently in debt said the cost of living is their biggest worry, while 41% highlighted the rising price of energy bills as their most pressing financial concern;
Nearly a quarter of Britons are worried about paying for heating and electricity over the next 12 months;
Just under a third (31%) of consumers aged 35 to 44, and 29% of those aged 18 to 24, have previously used borrowed money to pay for groceries;
More than half (53%) of those aged 18 to 24 admit they have had to cut back on costs, or have missed essential payments due to financial strains;
Almost three quarters (74%) of consumers currently in debt admit to a fear of becoming trapped by debt in the future.
