The Federal Government are looking at ways to crack down on the buy now pay later industry by the end of the year.
There are reports of people building up debt across multiple services with some bills as large as $4,000.
According to the Reserve Bank of Australia, there are seven million accounts worth $16 million.
Stephanie Tonkin from the Consumer Action Law Centre says consumers need to be protected.
She says buy now pay later is unregulated credit which is exploiting loopholes in the system.
The Government is looking at introducing measures that could include limited lending options, affordability tests and full regulation.
Financial Services minister Stephen Jones says measures need to be implemented to make it hard for people to get credit if they cant afford it.
He says the right sort of regulation will ensure there are checks and balances so people who simply cant afford it will find it difficult to prove why they should get another account.