People are turning to buy now, pay later services like Afterpay and Zip to cover the cost of everyday essentials. Subscribe now for unlimited access . Login or signup to continue reading $ 0 / $ NaN /year All articles from our website The digital version of Today's Paper Breaking news alerts direct to your inbox All articles from the other regional websites in your area Continue Financial counselling services have seen an increase in people falling into the "trap" of using these payment methods for necessities like groceries, fuel and dental bills .
They say low-to-middle income earners are most at risk. Aoife Berenger is the director of operations at Care, a financial counselling service. She said buy now, pay later was once used for luxury items and as an alternative to lay-buy, but has now become a necessity for some households .
The payment method typically allows shoppers to split the cost of an item over four repayments without interest, though fees apply for late payments and defaults. While they have benefits to consumers, buy now, pay later products are not regulated in the same way credit cards are. Some people who use the service don't see it as a debt, Ms Berenger said.
"It's a trap for people and it's not a trap for high-income people. It's a trap for mid-to-low income people and that is a concern for us," she said. Care has seen instances of people using the service to pay for children's clothing and medical bills.
"We've seen people using it for dental and we a.