The Role of Debt Management Literacy in Controlling Financial Impulsivity among PayLater Users in Young Generation

Abstract

The rapid growth of financial technology (fintech) has transformed consumer behavior, particularly through the emergence of Buy Now, Pay Later (BNPL) services such as PayLater. While these platforms offer flexibility and convenience in purchasing, they have also been linked to rising impulsive and consumptive behaviors among young users. This study aims to examine the role of Debt Management Literacy (DML) in controlling financial impulsivity among young PayLater users in Indonesia. Using a quantitative explanatory approach, data were collected through an online survey of 312 respondents aged 18–30 who had used PayLater services within the last six months. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results show that the use of PayLater positively affects financial impulsivity while DML and self-control negatively affect it. Furthermore, DML has a moderating effect, weakening the positive relationship between PayLater usage and impulsivity. These findings confirm that good debt management literacy acts as a buffer against impulsive financial behavior, reducing the risk of overspending and debt accumulation. The study highlights the importance of strengthening financial education and promoting responsible digital credit usage among young adults to achieve sustainable financial well-being.