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The Guardian - UK
The Guardian - UK
Business
Kalyeena Makortoff Banking correspondent

Debt concerns as UK public sector workers turn to buy now, pay later

Buy now, play later services such as Klarna, Clearpay and Laybuy enjoyed rapid growth during the Covid pandemic.
Buy now, play later services such as Klarna, Clearpay and Laybuy enjoyed rapid growth during the Covid pandemic. Photograph: MartinPrescott/Getty Images

Experts have raised concerns over cash-strapped public sector workers turning to controversial buy now, pay later loans after being turned down by mainstream lenders.

Analysis by the University of Edinburgh found that one in 10 public sector and NHS staff, who were initially rejected for a more conventional loan on the basis that they could not afford to repay it, went on to secure credit from buy now, pay later (BNPL) firms last year.

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