September 24th 2024.
Attention all Afterpay users in Australia! Exciting news - the popular buy now, pay later company has announced that it will introduce a self-regulated spending cap later this year. This feature, which is set to launch in 2024, will allow you to easily control your spending on the app with just a few taps. Afterpay has been mindful of its users' financial well-being, and this new spending cap function is just another way to help you better manage your finances.
But wait, there's more! Afterpay already has an estimated spend limit in place for its users, based on factors such as payment history and on-time repayments. In fact, frequent on-time repayments can even increase your estimated spending limit. This shows that Afterpay truly cares about its users' financial health and wants to encourage responsible use of their services.
However, recent findings by Finder have shed light on the potential risks of buy now, pay later products. One in three Australian users have reportedly missed paying other bills in order to afford their BNPL repayments in the past 12 months. That's a staggering 2.4 million people who have prioritized their Afterpay debt over other important expenses. The average BNPL debt in Australia has also decreased, from $1776 in January 2022 to $964 in September. This could be a sign that more people are becoming aware of the potential consequences of overspending with BNPL services.
It's worth noting that BNPL products like Afterpay are more popular among younger generations, such as Gen Z and millennials. As Graham Cooke, head of consumer research at Finder, warns, it's important for users to be informed about the risks and not rely on BNPL for everyday expenses. While it may offer convenience, there are still risks involved, such as overspending, late fees, and potential debt accumulation.
So, before you hit that "buy now" button, make sure to carefully consider your personal objectives, financial situation, and needs. The information provided on this website is general in nature and should not be taken as personal financial advice. Always remember to budget carefully and make responsible financial decisions. And don't forget to follow us on WhatsApp for all the latest news, celebrity gossip, and sports updates - no comments, no algorithm, and no one can see your private details. Stay in the loop with us!
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