Black Friday bargain-hunters should be wary of the flood of “buy now, pay later” offers at the checkout, money experts have warned, amid record numbers of people seeking help with shopping debts.
Billions of pounds will be spent online and in shops over the coming weeks, with more than one in three Britons said to be planning to use this form of credit to help stagger their Black Friday spending.
But debt organisations and charities say shoppers should think very carefully before succumbing to the temptation of clicking on the buy now, pay later (BNPL) button.
Citizens Advice said it was helping “more people than ever before” with BNPL-related problems. The charity added: “We urge people to take caution, especially if they are struggling with bills already.”
Meanwhile, Money Wellness, an organisation that provides free money and debt advice, said last month had been a record month for people seeking help with BNPL debt, with another spike expected in January and February as festive spending feeds through.
The number of shoppers turning to BNPL has increased steeply in recent years, with banking industry data showing the use of this type of credit rising from 14% to 25% of UK adults in the space of 12 months.
The credit, which is common at online checkouts, and increasingly available at physical shops too, lets people spread payments for everything from dresses and trainers to concert tickets, takeaway pizzas and hotel rooms.
Typically, the cost is split into three or four instalments, and if consumers keep up with their repayment plan they will not usually pay interest or charges. However, regulators and consumer bodies have long voiced worries that some people will end up taking out loans they cannot afford to pay back on time, thereby incurring charges, tipping them into debt and damaging their credit score.
In the UK, more than 3 million customers missed payments in 2024, some of whom will have ended up being pursued by debt collectors.
With the US-inspired Black Friday discount day on 28 November swiftly followed by Cyber Monday on 1 December and then a final burst of festive shopping, this is a bumper time of year for the BNPL industry, which in the UK is dominated by three brands: Klarna, Clearpay and PayPal.
UK consumers will spend £6.4bn on Black Friday purchases this year – up slightly on the £6.3bn spent last year, according to a forecast from the accountancy firm PwC UK.
The average transaction using BNPL is £114, according to the banking body UK Finance, with fashion – clothes, shoes and jewellery – accounting for almost half of all spending using this form of credit last year.
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Jane Parsons , at Citizens Advice, said it had shifted from a niche payment option to “a quick solution for people wanting to bag the latest bargains,” but it was still a form of credit, and using it “could still deal a heavy blow to your budget, with little protection if things go wrong”.
While BNPL is often interest-free, “it’s certainly not risk-free”, said Vikki Brownridge at StepChange.
For some shoppers, “juggling multiple BNPL payments alongside rent, bills and other debts can quickly become overwhelming”, said Sebrina McCullough at Money Wellness.
She added: “A major issue is having multiple lines of BNPL credit with different payment dates throughout the month, which makes it hard to budget and easy to lose track. Missed or late payments often come with fees, and debt can spiral before people realise.”
The Financial Conduct Authority will start regulating BNPL on 15 July 2026, which could require lenders to carry out affordability checks on even the smallest loans, so this will be the last Black Friday and Christmas when shoppers will not be protected by consumer legislation. From that date, BNPL loans will become regulated credit agreements.
