New research by the University of Sydney, has revealed that Buy Now, Pay later schemes are targeting vulnerable borrowers, raising concerns about people who have multiple accounts.

Dr Andrew Grant, Associate Professor of the University of Sydney’s School of Finance, told Michael Genovese and Mick Colliss, filling in for Millsy and Karl, that these products are targeted towards young people.

“They get lured in by not needing to pay interest on their account – quite often these things are targeted towards people who aren’t experienced in thinking about how to plan and budget for their upcoming expenses and they end up over spending,” Dr Grant said.

“You end up finding yourself in more of a financial hole so you might sign up for another Buy Now, Pay Later account to get out of the problem with your first account.”

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