“Buy Now, Pay Later” (BNPL) sounds harmless, doesn’t it? Split your shopping into easy chunks. No fees, no stress, no problem… until it is. For many, BNPL has quietly become the new payday loan. Same pressures. Same risks. Just better PR.
Why BNPL is Everywhere
BNPL is in almost every online checkout. Clothes, gadgets, even groceries. Retailers love it because you spend more. Customers love it because it feels like free money. But the catch? Late fees, mounting balances and a hit to your credit report if you miss payments. It’s like using plastic or digital money and it sure ain’t nothing like good old cash in your hand. Cash you can feel – plastic, no.
👉 Related: The Hidden Costs of Everyday Life
The Debt Creep
BNPL is marketed to young renters and those living month to month. The exact people who can least afford it. A £20 top, a £50 gadget, and suddenly you’re juggling six “interest-free” repayments across three different providers. It adds up fast, especially when payday isn’t stretching. And now you’ve got the equivalent of 6 separate ‘loans’ to keep funding.
👉 See also: Our Guide to Budgeting
Is It Worse Than Payday Loans?
In many ways, yes. With payday loans, at least you know you’re borrowing. With BNPL, you convince yourself you’re not. It’s debt by stealth. Payday loans are blunt. BNPL is polished and pretty until the bill hits.
The Smart Way Out
- If you must use BNPL, stick to one provider and one item at a time (like a loan).
- Track every repayment in your budget (no hiding).
- Treat BNPL as debt because that’s what it is.
⚡ If you’re struggling, a short-term loan can sometimes be the safer, clearer option with fixed terms, FCA-regulated lenders and no “oops, forgot about that one” creeping in.
👉 Apply here: Badger Loans – Get Started
Final Word
BNPL isn’t going away. But if you’re not careful, neither is the debt. Payday loans get the bad press, but BNPL might be the quiet killer in your bank account.
