Afterpay Day is a shameless sales promotion that will suck many people down further into a debt spiral which will be very difficult to recover from, warned Anglicare Victoria CEO Paul McDonald.
Organised by the ‘buy now, pay later’ company Afterpay, Afterpay Day encourages people to purchase items on credit that they pay for later in instalments.
“The cost of living is approaching uncharted heights in Australia, and debts are rising as a result of rental and mortgage increases. Against this backdrop, we see a shameless promotion encouraging people to go further into debt so companies can reap the benefits,” Mr McDonald said.
“Sure it is up to the individual to decide to live within their means, Mr McDonald said, “but I question the morality of companies in these times feeding off people’s desperation when they have to make hard choices, such as whether to heat or eat. They are being tempted to spend money they don’t have on things they don’t need, which will come back to bite them later.”
Mr McDonald said Anglicare Victoria’s financial counsellors provide free advice to those who are struggling with debt and see firsthand the impact that these kind of credit services have on vulnerable people. It is time for further regulation in this area, particularly in relation to the promotion of credit-based services, he said.
Alicia Bruton, Anglicare Victoria’s Program Manager of Community Services, manages the organisation’s financial counsellors in the North Central region, which includes Bendigo.
“People with no money are being bombarded by sales offers for credit at the same time that power prices are skyrocketing, there’s a rental crisis on, basic food and groceries are going up and people are having trouble affording school expenses for their kids. Financial matters continue to be the leading search terms on our website,” Ms Bruton said.
“The consequences of these things are very real. Our financial counsellors are seeing a rise in bankruptcies, people are letting different kinds of insurance go because they can’t afford to pay their premiums, and many people are going without the medication they need.”
For an interview with Anglicare Victoria CEO Paul McDonald or Program Manager Alicia Bruton, please contact: Mark Bretherton, Media and Advocacy Manager on 0439 806 072 or mark.bretherton@anglicarevic.org.au
