Buy Now, Pay Later leaves Brits with £2.3billion Christmas Credit Hangover

4 years ago

Reliance on debt comes as one in five Brits in their worst financial position ever.

HyperJar founder and CEO, Mat Megens, discusses how Brits can re-organise their money and launch their financial reset for 2021.

  • New research reveals 70% think their bank doesn’t help them to budget and plan their day to day finances
  • 19% say they are in a worse financial position than ever, due to Covid-19 
  • 26% say that both before and after Covid they had zero emergency buffer funds 
  • Looming negative interest rates leave savers searching for ways to protect and grow spending power

One in four consumers in the UK used a Buy Now, Pay Later credit scheme to pay for their Christmas shopping in 2020, totalling a staggering £2.3 billion. Equating to 40% of all Christmas purchases in the UK, the reliance on credit comes as almost 9 million Brits find themselves in their worst financial position ever. As shown in new national research from the budgeting-app HyperJar, the pandemic has had a crippling impact on Britain’s personal finances, with a further 19% confessing that they have zero savings left as a consequence of the pandemic. 

With 2020’s shattering impact on our national and personal finances, many of us now acknowledge need to be better with our money this year. However, with this resolution comes the realisation that the current banking system does not do enough to help us achieve our goals, as 70% feel that their bank doesn’t help them budget or plan their finances. 

With rumours of negative interest rates still circulating, there are few options available that encourage saving and protect consumer spending power. HyperJar provides a solution to both challenges.

Key Research Statistics*:

  • 19% (8,921,000) agree that, due to the Covid-19 pandemic, they are in their worst financial position ever
  • 70% (31,500,000) say that their bank doesn’t help them budget and plan day to day finances
  • 52% (25,093,000) agree that the current banking structure leaves them with no incentive to save
  • 47% (18,981,000) agree that since the pandemic, they now acknowledge the importance of tackling bad financial habits
  • 19% (8,737,000) report that the fallout from Covid-19 has left them with no savings at all
  • 26% (12,522,000) say that, even before Covid-19, they had no savings or emergency buffer
  • 26% (12,715,000) admit to having no emergency funds to fall back on in the future
  • 18% (8,594,000) believe their finances are the least organised part of their life

By using HyperJar, account holders who choose to commit money ahead of spending with HyperJar’s partner brands get a 4.8% Annual Growth Rate on every penny, calculated and added daily. This locked-in money must be spent with the business it is committed to, but there is no time limit and the balance keeps growing for up to 12 months.

The app is now expanding its partner base to include SMEs, with local pubs, cafes, kids’ centres, speciality food shops and restaurants starting to join the app over the next few months.  

HyperJar can be downloaded now from the App Store and Google Play Store. Account holders must be 18+ and a UK resident.

Mat Megens, founder and CEO at HyperJar, offers an insight into how HyperJar can help change the way we spend.  

“There’s been a hostile environment for saving and planning for years, and the gravitational pull of easy credit has never been stronger. A new way for people to budget and spend well is overdue.

The effectiveness of splitting out budgets and naming savings goals is well known, and our early customers tell us that adding a fraction more friction to their spending – taking a bit of time to think about what they want to spend in future – works. Visualising and allocating their money like this gives them clarity, control and confidence.”

* 2096 people surveyed 9th -11th October 2020. Figures in millions based on total adult population of 45m. Where the same percentages equal different population numbers, this is explained by those answering ‘not applicable’ in the survey.

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