With inflation placing significant pressure on household budgets, Buy Now Pay Later (BNPL) schemes, designed to replace the old fashioned ‘lay by’ of gifts and larger one-off purchase items, are now being used to buy household staples and everyday living items.

Bill Woods speaks with Sarah Wells, Finance & Money Expert, who says whilst BNPL products aren’t inherently harmful and allow households to manage tight moments in the short term, if there aren’t enough funds coming in, then this type of finance can really add additional pressure and compound an already tight budget.

So, how do we manage the increased cost of living?

What we do know is that ignoring these debts and hoping they’ll go away just doesn’t work.

Start by reviewing your actual household spending versus your budget. moneysmart.gov.au has a range of tools, along with contact details for advice lines for those who are in need or in a financial crisis right now.

There’s no shame in seeking financial help.

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