Young adults using buy-now-pay-later are more often overdrawn — and at higher risk of financial harm

Half of young adults in the Netherlands say their bank accounts are sometimes overdrawn, and those who frequently use buy-now-pay-later services are more likely to be among them. The National Institute for Financial Information (Nibud) found that 54 percent of 18- to 27-year-olds sometimes use pay-later providers like Klarna or Riverty, treating the option as a debit card rather than a loan. But this normalization carries risk: frequent users are more often overdrawn and more likely to spend beyond their means.

About 51 percent sometimes pay with a credit card, and 59 percent have financed a mobile phone through a subscription. Many say they use these tools to spread costs or inspect items before paying. Yet 37 percent of respondents struggle to make ends meet and sometimes borrow from family or friends.

Despite similar rates of budgeting, young adults who never use pay-later options manage their finances better. Nearly 40 percent of respondents said they never use such services.

The consequences are already materializing. Flanderijn, the umbrella group for debt collection agencies and bailiffs, reported a 50 percent increase over five years in young adults under 25 contacting debt collectors. Around 45,000 young people have unpaid health insurance premiums or traffic fines. The number seeking formal debt assistance rose by over a third in 2024 alone. Experts now warn that financial distress is making young adults more vulnerable to recruitment into crime.