Cost-of-living crisis drives vulnerable Australians to buy now, pay later schemes, consumer groups say

Representatives of Afterpay were observed signing people up to the service during an annual toy sale in Queensland. Photograph: Stephen Coates/Reuters

As the summer holiday period nears its end, Jessica* is staring down the barrel of a $1400 buy now, pay later debt she says she’ll struggle to get on top of.

She relied on Zip to stretch her single parent pension so she could pay for Christmas presents, the bills, and keep her daughter fed and entertained over the break. But it was also there to pay for any impulse buys.