Up to four million Australians are using buy now pay later services (BNPL) to pay for cosmetic or dental surgery, new data has revealed.
A survey by savings comparison service Finder discovered 44 per cent of Aussies reported using BNPL, with 38 per cent of whom – or the equivalent of 3.5 million people – later regretting their purchases.
Whilst the most popular purchase was clothing and accessories, 15 per cent admitted they used BNPL for cosmetic or dental work.
Around 44 per cent of Aussies say they use BNPL and a Finder survey found 38 per cent or 3.5 million people later regretted their purchases. (Getty Images/iStockphoto)
Financial expert Rebecca Pike warned of the dangers of using BNPL services for impulsive or vanity purchases.
“For major expenses like cosmetic procedures, a solid savings plan is often a more financially sound approach than taking on debt for something you want right now,” she said.
“The repercussions of buyer’s remorse can be far-reaching, especially when impulse purchases become a financial pitfall.”
However, spur-of-the-moment purchases are not the only thing BNPL is being used by Aussies.
Afterpay is a popular BNPL platform used by Aussies. (Steve Christo/Getty)
A quarter of Australians admitted they have purchased essential items such as groceries or utility bills using a BNPL service.
Despite BNPL services being an attractive option to help afford a potentially pricey purchase, they can have a significant impact.
Around 12 per cent of those said the BNPL purchase had led to them experiencing some form of financial difficulty.
“While it provides quick access to credit, it’s important to remember it’s a debt that needs to be paid off,” Pike said.
“If you’re struggling to curb this costly habit, the best thing to do is sleep on it. If you still desire the item 24 hours later, it becomes much easier to justify the financial outlay.”