Splitit review: Costs, features and what to be careful of, page-28

https://www.choice.com.au/money/credit-cards-and-loans/personal-loans/articles/buy-now-pay-later-services


The trouble with using 'buy now, pay later' services like Afterpay and ZipPay

A recipe for debt?

Afterpay's founders have become very rich, but for a significant portion of Afterpay and other buy now, pay later users, the instant money has made a dicey financial situation even dicier.

The problem is that fees and interest amount to the same thing in the end – a cost for borrowing the money.

More than half of users are spending more than they would without the services, and one in six can't make payments in time.

In the 2017–18 financial year, about $24.8 million of Afterpay's income came from late fees.

Buy now, pay later considered a small loan!