More Than Half Of Millennials Say BNPL Schemes Encourage Overspending

Hastee's 2019 Workplace Wellbeing Study has revealed that workers are increasingly using high-cost credit options between paydays despite knowing they’ll struggle.

The survey of 2,000 adults was designed to uncover how businesses and their employees fare when it comes to financial wellbeing in the workforce, and measured the impact of high-cost credit and rigid pay cycles on workers at all levels.

Excerpts from the Study follow and you can see the full report here.

A third of workers admit that they feel they often need to borrow money and the volume of workers using high-cost credit has actually increased from 78% in 2018 to 82% in 2019.

High-cost credit is most used by 18-44-year-olds in a variety of forms including credit cards, overdrafts and payday loans, suggesting that workers within this age range struggle to manage their finances more compared to older workers.

Buy-now-pay-later schemes have become more widely available in recent years and 56% of millennial workers (those aged 18-34) say that these schemes encourage them to spend money they don’t have.

While buy-now-pay-later may seem like a generous and convenient offering from retailers, it could be damaging users’ abilities to responsibly manage cashflow. Perhaps the most surprising research finding for some will be that those earning over £100k are the most likely to say they are negatively influenced by buy-now-pay-later schemes (77%). This supports what we have always said - financial wellbeing is not an issue faced exclusively to low earners, it is a cash flow concern that is felt by workers across the board. 

Source : Insight DIY Team

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