Split payment: to be consumed in moderation!

With the rapid development of online commerce and due to the crisis, payment in installments is gaining ground. This method of payment is especially popular for its “short-term credit” format, which allows purchases to be paid for in three or four installments, for a maximum period of 90 days. The solution is convenient for consumers who face cash flow problems, but it can put them in serious debt.

A risk of overconsumption

According to the OpinionWay-Floa barometer unveiled in June 2021,

Nearly one in three French people have already been tempted by split payment, compared to one in four the previous year.

79% of respondents in April 2021 say they plan to use this payment method again in the coming months.

ImportantUsers appreciate this new form of financing for the possibility of staggering payments and better managing their budget as well as for the streamlined procedure.

However, it represents a trap for those who are unable to control their expenses. If left unchecked, deferred payment can lead to overconsumption and the disastrous financial consequences that follow, including significant debt.

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A practice that can lead to over-indebtedness

resembling a Consumer credit simplified, the payment in installments is however not regulated by law. For a consumer to be able to obtain credit for an amount greater than 200 euros, he must meet certain criteria such as solvency. This is not the case with the split payment since it is granted instantly.

If they are not careful, users of this payment method can very quickly find themselves overwhelmed with the accumulation of different monthly payments, fees and possible penalties. The risk of over-indebtedness is high and can lead, in extreme cases, to the intervention of a bailiff and the seizure of real estate, at the request of the lender.

ImportantAware of the high risks of these abuses, the European Union plans to better regulate this system in the coming months.

To this end, the law on consumer credit may need to be revised.

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