1 in 7 Christmas shoppers will turn to buy now, pay later

One in seven people plan to use buy now, pay later (BNPL) services to cover the cost of their Christmas shopping this year.

That’s according to new research from PayPal, which found that more than half of these people (55%) are doing so spread the cost across several paydays.

Meanwhile, one in three (35%) are using BNPL so they can keep money in their account to cover other festive expenses, and a similar number (34%) say it will help them with budgeting.

What is buy now, pay later?

BNPL allows you to split the cost of a purchase into smaller instalments, usually over several months. 

And many providers offer it without charging interest if you pay on time.

BNPL can help, but it shouldn’t become a way to make ends meet

For many of us, BNPL has become a really helpful way to budget and spread the cost of purchases.

But the fact it makes spending so easy means you can end up taking on more debt than you can afford.

And we should point out that more people are coming to us seeking help with BNPL debt than ever before.

In fact, one in four people now seeking help from Money Wellness have at least one BNPL debt.

That suggests to us that many households aren’t just using BNPL to cover big purchases and seasonal expenses.

Increasingly, people are using it to cover everyday costs as household budgets come under pressure.

If BNPL is becoming difficult to manage, get support early

BNPL can be a useful budgeting tool, but if you’re using it regularly for essentials, juggling several accounts, or worrying about repayments, it may be time to seek support.

Getting debt advice early can help you understand your options and prevent small problems from escalating.

Jaquilina’s story

Jaquilina's experience highlights how BNPL can sometimes lead to households falling into difficulty.

She was between jobs when she asked Money Wellness for support, and struggling to keep up with rising living costs while supporting two young children.

To manage day-to-day expenses, she relied on BNPL, building up around £950 across five accounts.

The multiple repayments made budgeting difficult and she started falling behind on priority bills, including over £800 in council tax and energy arrears.

With our help, Money Wellness helped Jaquilina set a realistic budget, start a debt management plan, and access support such as grants and council tax support.  

That put her finances in a more stable position and she could finally start addressing her arrears.