How buy now pay later schemes are pushing families into debt

Around half of shoppers say they’ll use these schemes to pay for their Christmas goods, without always realising it’s a form of short-term borrowing which could damage their credit rating, as ITV News’ Charanpreet Khaira reports

Buy Now Pay Later has become a familiar option at the checkout. It allows shoppers to split the cost of a purchase over weeks or months, often interest-free.

For many rushing to finish their Christmas shopping, it can feel like a harmless way to spread the cost.

But new figures shared exclusively with ITV News suggest the bill is catching up with a growing number of households.

More than £33 million of Buy Now Pay Later (BNPL) debt was written off in the past year — a 73% increase on the year before.

BNPL allows shoppers to delay or spread payments, often interest-free. What’s less obvious is that it’s a form of short-term credit – and one that is now easier than ever to use.

Jaquilina, a single mother of two, says BNPL once felt like a sensible solution – especially at Christmas, when, like many of us, she felt pressure to spend more than she could afford.

“I started buying things like shoes and clothes for my kids,” she told ITV News. “You think, I’ll pay in 30 days – I’ll deal with it later.”

Over several years, she estimates she spent around £4,000 using BNPL schemes. Missed payments soon led to late fees, reminders, and growing anxiety.

“You receive those letters, those emails, those reminders, and you need to feed the kids, keep up with the bills.

“You never know – you might even reach the point where someone knocks on your door because you owe money to somebody.”

Jaquilina is now on a repayment plan with debt advice organisation Money Wellness and hopes to be debt-free within two years – but she is not the only one who has got into trouble with this sort of debt.

According to Blackhawk Network, just under half of UK consumers plan to use BNPL to fund some of their Christmas spending.

Once largely limited to online shopping, BNPL is now appearing on the high street too, with lenders offering physical cards that allow shoppers to spread the cost at the till.

Charities warn this makes borrowing easier – without people fully registering what they are taking on – particularly at Christmas, when the Money Advice Trust says one in four adults feels pressured to overspend.

Debt advice charities say they are seeing a sharp rise in people struggling to keep up with BNPL repayments.

Money Wellness says 60% of customers who contact them about BNPL debts are classed as vulnerable, including people with health conditions or disabilities.

More than half also have arrears on priority bills, such as council tax, gas, electricity or water.

Both Money Wellness and the Money Advice Trust expect demand for their call centres to spike in the New Year, when festive spending catches up and repayments fall due.

From July 2026, the government plans to introduce new rules requiring BNPL providers to carry out affordability checks and giving consumers the right to complain to the Financial Ombudsman if they face problems.

This Christmas will be the last before those regulations come into force.

But some campaigners argue the changes will not fully address how easy it still is to spend first and think later.

Mick McAteer, from the Financial Inclusion Centre, told ITV News the regulation “won’t address the issue of making it too easy to borrow and too easy to spend.”

He added that it would not stop BNPL companies from targeting consumers through retailers and social media.

A Treasury spokesperson said adverts must already be clear that BNPL is a form of credit.

ITV News contacted the UK’s largest Buy Now Pay Later providers.

Those who responded said most customers use their products responsibly and repay on time, with checks in place to ensure payments are manageable.

But charities warn it is the most vulnerable who can fall between the cracks – and for whom the impact of mounting debt can be most severe.