With the cost of living continuing to rise and the added financial worry summer can bring, many young people are finding themselves in difficult financial positions, including debt. Problem debt is also a major barrier to achieving financial freedom – the focus of MyBnk’s major new campaign.
That’s why we’re supporting StepChange Debt Charity in their mission to start debt conversations this summer, concentrating on Buy Now Pay Later – a popular borrowing option amongst 16-25 year olds.
Buy now, pay later (BNPL) is the name for a kind of credit payment that allows you to purchase goods, but pay for them either later or by instalments. Popular providers like Klarna and ClearPay can now be seen on lots of website checkouts, making it easier than ever to buy now, pay later .
Although this way of paying is a quick and convenient way to borrow money, it’s important to keep track of your spending, otherwise you risk borrowing more than you can afford to pay back. In addition, it can also be easy to overestimate what you can afford, which will ultimately make your financial situation worse.
When you need help with things like debt, housing issues and bills, the worry that arises can (and often will) take its toll on your wellbeing. It also affects how you interact with friends, family, loved ones and colleagues. That’s what StepChange client Chloe Porter discovered, as she found herself in an impossible situation with a baby on the way:
Every year, StepChange Debt Charity’s team of experts help hundreds of thousands of people with their debt problems, based on almost 30 years of experience. They offer the most comprehensive range of free advice, support and solutions of any provider in the UK, from budgeting to repayment plans and from insolvency to mortgage advice.
If you’re regularly deferring payments or spending too much on buy now, pay later shopping, it may be a sign you need debt help. Many people struggling with financial issues aren’t even aware that support is available, or that organisations like StepChange can help them take back control. It can be difficult to open up and admit you need help, but it’s a necessary step to move towards financial freedom.
If you need debt advice, StepChange can help. Visit their website for online debt advice or give them a call on 0800 138 1111. Their lines are open Monday to Friday 8am to 8pm, Saturday 8am to 4pm.
For more help, MyBnk has a dedicated area for young people on our website, including a free online module on debt. Our Money Works and Money House courses for young adults also cover the basics of debt and borrowing, from credit histories to debt consequences and prioritisation.
