In a TikTok video that has since been deleted, the 21-year-old confessed to her unchecked spending habits and voiced regret over the financial choices that led her to forgo larger investments like purchasing a car. She implored viewers to review their bank statements, emphasizing that such spending could go unnoticed.
Afterpay, established in 2014, allows users to divide purchase costs into four interest-free instalments over six weeks. As a popular "buy now, pay later" (BNPL) service, Afterpay stands alongside competitors like Klarna and Zip Pay, currently ranking as the third most favoured credit option in Australia after credit cards and home loans.
Shyneka's story resonated widely, with numerous TikTok users sharing their own experiences of significant spending using the service. Reports of high expenditure were common, with some users admitting to spending upwards of $60,000 and even $122,000 since 2023.
Despite the startling figures, some users offered practical advice for managing BNPL services responsibly. Suggestions included limiting oneself to a single active plan and introducing a waiting period before new purchases.
Simultaneously, regulatory changes to BNPL services have been introduced in Australia, aligning them closely with traditional credit products like credit cards. These new rules mandate that BNPL providers must hold an Australian credit licence and carry out necessary financial checks to understand and mitigate potential consumer financial strain.
This oversight aims to shield consumers from detrimental credit agreements, ensuring greater financial responsibility and transparency in the rapidly growing BNPL sector. By requiring providers to conduct thorough assessments of a consumer's financial health, these measures seek to prevent individuals from falling into unmanageable debt.
