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Martin Lewis warned Brits under 30 to not fall for dangerous scheme

Martin Lewis warned Brits under 30 to not fall for dangerous scheme

The financial journalist and broadcaster shared his concerns for young people who are looking to get on the housing ladder in the future

As people continue to navigate the cost of living crisis, Martin Lewis has been on hand to offer support and help everyone save a bit of cash during this difficult period.

From drivers to tax rebates, the expert has been dishing out advice to everyone to keep their finances on track.

Now, he's issued a warning over the dangers of certain credit schemes for under 30s.

ITV

Lewis is urging people who use 'buy now pay later' schemes to stop for a very important reason.

The financial journalist and broadcaster spoke out to a government committee in December 2020 about his concerns about credit schemes, particularly for people under 30.

He said at the time that the schemes are the ‘fastest form of growing credit’ and are often advertised to young shoppers and appear on our social media feeds via influencers, which is ‘fundamentally inappropriate’.

This form of credit, Lewis said, is unregulated and may affect your credit score, which could lead to debt collectors arriving at your house. But because this form of credit is unregulated, there is no ombudsman for you to get help from and could land you in heaps of trouble.

While it may seem like a quick fix now, over time this can affect young people’s finances and may make it harder for them to get a mortgage.

"It is absolutely the fastest form of growing credit in the country.

"It is targeted at the under-30s and which, if you forgive me, most policymakers are not under 30.

Martin Lewis previously criticised 'buy now, pay later' schemes.
ITV

"It has gone under the radar. Advertising is done by influencers on Instagram.

"My issue is as it was with payday loans, we are in the explosion of this form of credit, today.

"This is absolutely huge, it is a massive form of credit which is unregulated, without controls.

"And when people have problems, whether they don't get their product, whether their credit score is affected, whether they have debt collectors coming to their house... there is no ombudsman you can go to, because it is unregulated.

"These can be used well and can be good too, but there are many ways these can become real problems for young people's finances that will leave them in trouble, unable to get a mortgage or get on the housing ladder."

He added: "If this happens in two years time, you've failed I'm afraid, political classes have failed if we regulate in two years time.

"Two months time would be alright."

More recently, Lewis hit out at takeaway delivery app Deliveroo for including a ‘buy now, pay later’ option with Klarna when it comes time to order food.

The Money Saving Expert asked Deliveroo: "Do you really need pump debt as a way to pay for takeaways?"

When asked why it had included delayed payments through Klarna to the range of payment options, a Deliveroo spokesperson told LADbible: "Deliveroo offers choice to our customers, from neighbourhood eateries and your weekday lunch to a Saturday night celebration.

"Millions of people are already choosing Klarna and we’re giving customers more choice and more flexibility with a safe, secure way to pay online."

A Klarna spokesperson said 'people have been paying for food deliveries with credit cards and overdrafts for decades', with them offering a 'healthier alternative' without 'rip-off fees and extortionate interest'.

Featured Image Credit: ITV / Realimage / Alamy Stock Photo

Topics: Martin Lewis, Money, UK News