Shoppers warned to be wary of ‘buy now, pay later’ this Black Friday

The biggest sale of the year, Black Friday is just days away, and you’re probably already seeing discounts on clothes, tech, beauty products and more pretty much everywhere you look.

The sales provide the chance to pick up big-ticket items and Christmas gifts for less, but you’re only saving money if you purchase discounted items that you were planning to buy anyway. My recent research has shown that most items are likely to be cheaper on Black Friday than in the Boxing Day sales, but while there are savings to be made, this is also a period when the urge to overspend is stronger than ever.

“Marketing strategies used during these periods often generate a sense of urgency and ‘fear of missing out’ (FOMO), which can reduce consumers’ deliberation time and lead to more impulsive purchases,” says Dr Donna Mai, principal lecturer in marketing management at the University of Westminster.

This temptation is only increased by the widespread availability of buy now, pay later (BNPL) schemes, Dr Mai argues.

“BNPL further lowers the psychological barrier to spending, by separating the act of purchasing from the financial impact of payment,” says Dr Mai. “As a result, consumers may buy items they would not normally purchase, or spend beyond their financial means.”

What is buy now, pay later?

You’re probably already familiar with the likes of Klarna and Clearpay, but in case you’re not, these schemes are forms of credit that enable you to make a purchase immediately and pay it back over time. Many of these services are interest-free, which is part of the appeal.

To be clear, I’m not telling you to avoid BNPL altogether, as they can be a cheap way of accessing credit. But there are a number of pitfalls when it comes to ‘buy now, pay later’ that should be kept in mind before using such schemes.

open image in gallery

Watch out for overspending

A golden rule for Black Friday – and for sales in general – is that you’re only saving money if you were going to make the purchase anyway.

The same principal can be applied to using BNPL. If you were planning to buy something, using BNPL can help you spread the cost, but seeing that Klarna or Clearpay is available shouldn’t be what pushes you to make the purchase.

Get a free fractional share worth up to £100.
Capital at risk.

Terms and conditions apply.

Go to website

ADVERTISEMENT

Get a free fractional share worth up to £100.
Capital at risk.

Terms and conditions apply.

Go to website

ADVERTISEMENT

Before you hit checkout, ask yourself: would I still buy this if BNPL wasn’t available? “If you wouldn’t be able to pay the full amount upfront, it may be a warning sign that the purchase doesn’t fit your budget,” says Dr Mai.

Keep track of your repayments

Part of why people like ‘buy now, pay later’ options is that you can put off thinking about the financial impact of your purchase. But, of course, this is only kicking the can down the road.

Dr Mai recommends limiting the number of BNPL services you use at once and keeping track of what you’ll need to repay: “It’s easy to accumulate multiple repayments that hit all at once. A simple spreadsheet or budgeting app can help you keep track of due dates and total outstanding balances.”

open image in gallery

Missing payments can affect your credit score

It’s crucial to make sure you’ll be able to afford your BNPL payments. Missing these can result in additional fees and interest, which add up quickly, and could damage your credit score.

Dr Mai says: “Work out whether the repayments will comfortably fit into the next few weeks of your finances, including rent, bills and everyday spending. If making the instalments means cutting back on essentials, it’s better to walk away.”

Though many Black Friday sales are advertised as limited-time offers, it’s better to make an informed decision you’ll feel good about – Dr Mai suggests waiting 24 hours: “If you still want the item the next day, and can afford the repayments, you’ll know it was a rational decision rather than in the heat of the sale.”

Buy now, pay later isn’t regulated yet

Right now, BNPL is unregulated, which means that consumers have fewer options in place if things go wrong. This is concerning as, according to Dr Mai, the people most at risk of using BNPL irresponsibly are people who are already vulnerable, such as low-income people and those already in debt.

However, this is set to change from July 2026 when new rules come into force. BNPL firms will have to conduct affordability checks, give clearer information about the risks involved and provide additional consumer protection if things go wrong.

For more ways to save during the sales season, check out my Black Friday shopping tips