She expressed concern that while these services may be convenient and accessible, users may easily get trapped in a cycle of debt if they do not manage their finances responsibly.
Mdm Nirnala also pointed out that BNPL providers often do not conduct thorough credit checks or affordability assessments on their users, which could lead to users being granted credit limits that they may not be able to afford to repay.
She highlighted the importance of financial literacy and responsible spending habits, emphasizing the need for consumers to assess their financial situation and capabilities before utilizing BNPL services.
Mdm Nirnala encouraged users to create a budget and payment plan to avoid falling into debt traps, and to seek financial counseling if they find themselves struggling to make payments.
She also called for greater regulation and oversight of BNPL providers to ensure that they are operating in a responsible manner and taking into account the financial well-being of their users.
In conclusion, while BNPL services offer convenience and flexibility for consumers in managing their finances, they also pose risks if used irresponsibly. It is important for users to exercise caution and practice financial discipline when utilizing BNPL services to avoid falling into debt traps. Additionally, greater regulation and oversight of BNPL providers may be necessary to protect consumers and ensure that they are not being exploited.
