Beware Black Friday‘s “Buy Now, Pay Later” trap

Black Friday shoppers need to be cautious of “buy now, pay later” (BNPL) offers. Experts warn a record number of people are already struggling with shopping debts.

Billions will be spent online and in stores in the coming weeks. Over a third of Britons plan to use BNPL to manage their Black Friday spending.

Debt organizations and charities urge shoppers to carefully consider BNPL before clicking that button. it’s a tempting option, but one that can quickly lead to trouble.

Citizens Advice is helping more people than ever with BNPL-related issues. They advise caution, especially for those already facing financial strain.

Money Wellness reported a record number of people sought help with BNPL debt last month.They anticipate another surge in January and February as holiday spending catches up.

BNPL use has risen sharply in recent years. Banking data shows a jump from 14% to 25% of UK adults using this credit type in just one year.

This credit is now common at online checkouts and increasingly available in physical stores. It allows people to spread payments for items like clothes, concert tickets, and even takeout.

Typically, purchases are split into three or four installments.Consumers avoid interest or charges if they stick to the repayment plan.However, regulators worry some will take on loans they can’t afford, leading to late fees, debt, and a damaged credit score.

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