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Concerning reason millions of Aussies have skipped paying a bill

Millions of Aussies have admitted they can’t live without buy now, pay later.

Eliza Bavin
·Personal Finance Editor
Updated ·2-min read
A composite image of Australian money and people shopping in Australia to represent buy now, pay later debts.
Aussies are becoming more dependant on buy now, pay later products. (Source: AAP)

Millions of Aussies have been placing buy now, pay later (BNPL) payments ahead of their other monthly obligations, according to new research.

Around two in five (43 per cent) Australians used a BNPL account in the past six months, a Finder survey of 1,090 respondents revealed.

Of those who have an account, one in three – equivalent to 2.8 million people – have skipped another bill in order to meet their BNPL repayments.

Aussies’ shopping habits revealed

Finder money expert Sarah Megginson said many were too reliant on paying in installments.

“The BNPL system has seen millions of people fear the thought of having to pay for things in one single transaction,” Megginson said.

“Many are going into huge debt thinking they can afford to buy lavish items and pay it off later, and get trapped in the cycle of spending money.”

A shocking 14 per cent have missed paying their energy bill to cover what they bought on BNPL.

The research found one in 10 had disregarded paying for their personal loan to finance their shopping habit. The same amount (9 per cent) missed a mortgage repayment.

Some had gone as far as skipping a meal (11 per cent) in order to meet their BNPL repayment on time.

The fees are massive

Megginson said, while paying in installments was quite enticing, late fees and account fees could make it more expensive than a credit card.

Research from Curtin University found the fees for missing BNPL payments could equate to a 276.12 per cent effective interest rate, based on a $30 purchase and the maximum potential fees.

Megginson said new government regulation would see the BNPL system considered a credit product for the first time, which was a step in the right direction.

“People are forgoing essential items in order to meet their repayments on time and the domino effect this can have is unimaginable,” Megginson said.

“The regulation will see lower fees and charges for those who get caught out with multiple transactions draining their account.”

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