As Black Friday approaches, financial experts are issuing urgent warnings to UK shoppers about the potential dangers of buy now, pay later schemes that could lead to significant overspending during the sales frenzy.
The Psychological Impact of BNPL
Dr Donna Mai, principal lecturer in marketing management at the University of Westminster, explains that Black Friday marketing strategies deliberately create a sense of urgency and fear of missing out. This psychological pressure reduces deliberation time and encourages impulsive purchases, a problem exacerbated by the widespread availability of BNPL options.
"BNPL further lowers the psychological barrier to spending by separating the act of purchasing from the financial impact of payment," Dr Mai states. The result is that consumers often buy items they wouldn't normally purchase or spend beyond their financial means.
Understanding Buy Now, Pay Later
Services like Klarna and Clearpay allow shoppers to make immediate purchases and pay for them over time, typically interest-free. While these can provide affordable credit when used responsibly, experts caution against relying on them for impulse buys during sales events.
The golden rule for Black Friday shopping remains unchanged: you're only saving money if you were planning to make the purchase anyway. The same principle applies to BNPL usage. If you wouldn't buy the item without BNPL availability, it's likely an unaffordable impulse purchase.
Practical Protection Strategies
Dr Mai recommends several practical steps to avoid BNPL pitfalls. First, limit the number of BNPL services you use simultaneously and maintain careful track of repayment schedules. "It's easy to accumulate multiple repayments that hit all at once," she warns, suggesting that shoppers use simple spreadsheets or budgeting apps to monitor due dates.
Missing BNPL payments carries serious consequences, including additional fees, interest charges, and potential damage to your credit score. Before committing to any BNPL agreement, ensure the repayments fit comfortably within your budget alongside essential expenses like rent and bills.
Perhaps the most valuable advice is to implement a 24-hour cooling-off period. "If you still want the item the next day and can afford the repayments, you'll know it was a rational decision rather than one made in the heat of the sale," Dr Mai advises.
Currently, BNPL remains unregulated in the UK, leaving consumers with limited protection if problems arise. This is particularly concerning for vulnerable groups, including low-income individuals and those already in debt. However, this situation is set to change from July 2026 when new regulations will require BNPL firms to conduct affordability checks and provide clearer risk information.
