The cost of buy-now-pay-later
More Klarna drama
Debt charities are calling on BNPL lenders to:
explain the risks at the point of purchase
make terms clear in adverts
Credit score damage
Student Erin Phillips discovered her good credit score got halved after she missed a few Klarna payments for small items
“I was quite naive, and I didn’t think these little purchases would affect me so much”
Very popular with students and young customers under 25, the risks to credit scores are not stated by Klarna or the retailer at point of sale
Stuart Carmichael, Chief Exec Debt Support Trust told FYT…
“It is imperative that all lenders clearly state the risks of borrowing money. This includes relevant risk warnings that a person's credit score could be impacted if they fail to meet their contractual obligations.
If you default on a contractual agreement, regardless of the amount, it can be detrimental to your ability to borrow money in the future"
Klarna has had issues relating to ads investigated by the Advertising Standards Authority
Klarna was cleared, but debt charities still describe some bnpl adverts as ‘misleading’
FAQs 💳💳
What happens to my credit score if I BNPL?
Nothing, if you pay within the time limit
So when does it affect my credit score?
If you don’t pay within 30 days and ignore reminders, it becomes a ‘bad debt’
A debt collector reports you to a Credit Agency
Your credit score goes down because you’re more risky
Why does a good credit score matter?
Mortgages, loans, credit cards, phone contracts, car insurance and loads more are….
Easier to get and cheaper
Social-media influencers' income rockets
1000% pay rise in 5 years
The average price of a sponsored photo on Instagram has jumped from:
£104
in 2014
to
£1276
in 2019
Even for micro influencers - people with less than 100,000 followers, the money is good.
Marketing firm Izea also found…
YouTube videos command the highest fees:
£323
in 2014
to
£5153
in 2019
Regulators get tough with influencers
The Consumer Rights Act makes it illegal
to post sponsored content without saying so
Last month, The Advertising Standards
Authority banned 3 influencers on Instagram
for… touting diet products.The ASA said they
were ‘irresponsible’
What are the rules on sponsored posts?
When influencers get 💰💰/reward for an endorsement, a post must make it obvious that...it’s an advert
they can use hashtags like ad or advert but not spon, or thanks to (brand) because that’s not clear
In June, homecare product influencer Mrs Hinch was investigated by the ASA
She failed to disclose on her Instagram account that a post endorsing Febreze was sponsored
Election news on minimum pay rates:
What the two main political parties are saying
Pay boost for millions of people say Institute of Fiscal Studies
will raise National Living Wage to £10.50/hour by 2024 for 21 and over
4.4 million people would be on this rate, up from 1.9m today
a Real Living Wage of £10/hour in 2020 for all workers aged 16 and over
6.5 million people would be on this rate
The Institute of Fiscal Studies warned that the rises should be
"careful and incremental”
They think a big/quick increase in wages for young workers could see them struggle to find work if employers cut back on jobs.
Rates for the 2019/20 Minimum/Living Wage are:
£8.21 /hr £7.70 /hr £6.15 /hr
aged 25 and over aged 21 - 24 aged 18 - 20
other news:
Bride gets dress-shamed for H&M bargain
A bride-to-be took to Mumsnet for opinions
on her wedding dress.
Wedding boutiques near her were too pricey
for her budget
“Everything costs an arm and a leg”
- she said
H & M wedding dresses start at £56
One was absolutely perfect for her, her dream dress. But when she told friends where it was from…
they mocked her
they questioned her judgement