A young Aussie has exposed the dark reality of ‘buy now, pay later’ services after she spent an eye-watering $19,000 using Afterpay in just two years.
Hobart woman Shyneka Long, 21, was so horrified by her Afterpay ‘addiction’ she made a TikTok video urging others to check what they were spending.
‘This is your sign to literally delete Afterpay or go and look at your bank statements and see how much you’ve spent on Afterpay in the last two years,’ she said.
‘I could’ve bought a car… I’m really about to expose myself but in the last two years I have spent $19,000 on Afterpay. What the f***.
‘I could have had a f***ing car. Is there an addiction anonymous for Afterpay? Because where do I sign my whole family up. This is bad, this is so bad.’
Afterpay is a popular buy now, pay later (BNPL) service that allows customers to pay for items in four interest-free instalments over six weeks.
But Ms Long wasn’t the only one guilty of overspending using BNPL services with others quick to confess their Afterpay sins in the comments of her video.
‘I’m going to hold your hand when I tell you, mine since 2023 is $62,815,’ one said.
‘I think I might take the cake – $122,502,’ a second commented.
‘My mum had to get Centrelink loans to pay hers back,’ a third said.
’45k in 2 years, but I’ve had it since like 2018.. I’m actually ashamed,’ a fourth wrote.
‘Omg I just checked mine and thought I’d be the same but it’s only at $5,885. I’ll keep the app,’ another shared.
‘I got banned from Afterpay when I bought too much and couldn’t pay it all off on time, eventually paid it all just way later than they wanted,’ a woman commented.
Others shared their advice for keeping BNPL spending at a minimum.
‘I have a rule for Afterpay: only one at a time, and always wait a month before buying something new/starting a new one,’ one person wrote.
‘Afterpay can be a really good tool for getting things you want. I’ve been investing in slow fashion with Afterpay + stuff I’ve needed like quality luggage etc,’ a second said.
Data collected in late 2024 found (BNPL) services like Afterpay, Klarna or Zip Pay were used by two in five ns in the previous six months.
They are the most popular credit product in , behind credit cards and home loans.
Research found Millennials make up 38 per cent of users of BNPL services followed by Gen Z at 13 per cent.
Up to 15 per cent of Gen Z BNPL customers didn’t believe lenders would check their credit score as part of eligibility for loans.
New laws to shift the regulations of BNPL services in line with credit cards came into effect on Tuesday.
The new laws require BNPL providers to hold an n credit licence, perform mandatory checks on customers’ credit scores and financial status, and enforce stricter spending limits.
Customers with existing BNPL accounts will not be required to undergo a credit check, only new customers.
BNPL loans will also have a larger impact on credit scores, a status used to check eligibility for credit cards, personal loans and mortgages.
Moving forward, late and skipped repayments will lower customers’ credit scores and outstanding repayments will be considered as debt.
An Afterpay spokesperson told Daily Mail it ’empowers customers with flexible payment options, allowing them to manage their spending effectively and avoid revolving debt’.
‘We believe everyone should have access to a safe, simple and transparent way to manage spending – whether it’s everyday essentials, unexpected expenses, or one-off purchases,’ they said.
‘Afterpay is a free service for consumers who pay on time and a much safer and affordable alternative to traditional credit, which can charge interest rates of more than 20 per cent.
‘Our product has a number of in-built safety features to protect customers from harm. Our current model exposes customers to the lowest possible risk.’