Credit Action director Chris Tapp has warned that consumers need to check buy now, pay later deals carefully to make sure they know exactly how much they are going to cost in the long run.
While there are some good deals available and agreements of this nature can be useful when buying certain items, the expert said they can also be expensive.
“People do need to know exactly what they are signing up for, what their rate of interest is [and] how long it is going to take them to pay that off,” he commented.
Mr Tapp added that they can be particularly costly when they have an effect on insurance premiums and claimed that whether they are a good idea or not is determined entirely by the nature of the deal.
In-store credit is becoming increasingly popular among consumers, the Financial Leasing Association has suggested, with this segment worth £230 million in March – up 24 per cent on last year.