Buy Now Pay Later Is No Way To Enjoy Christmas

Your money

- Tricia Phillips

ALARM bells are ringing loudly amongst debt charities around Buy Now Pay Later as more and more people are turning to this form of credit for purchases.

Research from Barclays Bank and debt charity StepChange found almost one in three people has used BNPL to pay for things, but worryingly one in three said the lending had led them into debt problems.

As we head towards the biggest shopping frenzies of the year Black Friday, Cyber Monday and Christmas there are huge concerns that people already struggling to make ends meet will be tempted into spending too much, and fall into a debt spiral.

The multibillion-pound BNPL industry is to be regulated by the Financial Conduct Authority. But, the Government is dragging its feet and the new rules may not be brought in until 2024. Meanwhile, people are being lured in to spend too much, ending up with serious debt problems and falling off the financial cliff.

It can be incredibly useful to use BNPL to spread the cost of a big one-off purchase, or an emergency essential, over a few months, and not have to pay any interest on top. But only if you know you can easily afford the monthly repayments.