Citizens Advice Carlisle & Eden (CACE) has sparked concerns about the 'vicious cycle' of 'buy now, pay later' schemes, with over 90 per cent of current debt clients having at least one of these arrangements. 

In the past, CACE has seen buy now pay later (BNPL) schemes being used for one-off items such as Christmas presents but now, people are relying on them for 'day-to-day' essentials. 

Andy Auld, CEO of CACE, said BNPL is becoming a 'massive problem' for CACE. 

"It's estimated over 90 per cent of current clients seeking help with debts have one of these arrangements. 

"People are struggling every month to get through to their next payday or benefits payment.

"They rely on BNPL to help with essentials but are finding it a vicious cycle. 

"They continue to need BNPL deals so they prioritise repaying those debts over rent, mortgage, gas and electric - the real priority debts.

"They are doing it that so they can take out another arrangement next month," he said. 

The gravity of the situation is underscored by a case study of a single male in the area who was working full-time until mental health issues forced him to stop. 

The individual, facing a five-week wait for Universal Credit payments, resorted to a budget advance, setting off a chain of debt. With credit card debt and an overdraft at its limit, the individual turned to BNPL services for basic necessities, plunging into a cycle of further debt.

CACE provided foodbank vouchers and negotiated with creditors. To resolve this he will need a debt relief order (DRO), which will likely be detrimental to his health.

Research conducted by Citizens Advice revealed that over one in four UK adults express their likelihood to use BNPL for festive spending.

The figure rises to 56 per cent among parents with primary school-aged children.

Citizens Advice is calling on the government to bring forward regulation of the BNPL sector. The sector currently remains unregulated. 

Citizens Advice Carlisle & Eden offers free, confidential, independent, and impartial advice and information to anyone who needs it. 

If you require help or advice, call 0808 278 7844.