42% young people say they ran out of spending money before Valentine’s Day and are turning to credit to make sure the ones they love feel special, according to research by Creditspring. 38% siasd they would buy a Valentine’s gift using buy now pay later and 36% say Valentine’s Day spending will put them in their overdraft this month.
Neil Kadagathur, CEO and Co-Founder at Creditspring, comments: “Love could come at a high price this year, with millions of young people relying on credit to treat their partners this Valentine’s Day. Young romantics admit they’ll have to use credit cards or even BNPL to afford meals or gifts this year, putting additional strain on their finances after several years of a cost of living crisis which, for many, will have already eroded any savings they’d built up.
“For those using BNPL, it’s enormously problematic that it remains an unregulated sector, with many people still in the dark about the potential pitfalls and dangers if they miss a repayment.
“Borrowers need simple, transparent and accessible products that don’t put their long-term financial security at risk. Ultimately, the onus has to be on lenders to ensure that borrowers understand the risks and support them before they rack up huge debt piles.”
