Customers warned to be cautious of ‘purchase now, pay later’ this Black Friday

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Your help makes all of the distinction. Learn extra The most important sale of the yr, Black Friday is simply days away, and also you’re most likely already seeing reductions on garments, tech, magnificence merchandise and extra just about in every single place you look.

As I’ve stated earlier than, the gross sales are a superb time to purchase big-ticket objects and Christmas presents that you simply have been planning to purchase anyway – my latest analysis has proven that the majority objects are prone to be cheaper on Black Friday than within the Boxing Day gross sales. However whereas there are financial savings to be made, that is additionally a interval when the urge to overspend is stronger than ever.

“Advertising methods used throughout these durations usually generate a way of urgency and ‘concern of lacking out’ (FOMO), which might cut back shoppers’ deliberation time and result in extra impulsive purchases,” says Dr Donna Mai, principal lecturer in advertising and marketing administration on the College of Westminster.

This temptation is simply elevated by the widespread availability of purchase now, pay later (BNPL) schemes, Dr Mai argues.

“BNPL additional lowers the psychological barrier to spending, by separating the act of buying from the monetary affect of cost,” says Dr Mai. “Consequently, shoppers might purchase objects they might not usually buy, or spend past their monetary means.”

What's purchase now, pay later?

You’re most likely already conversant in the likes of Klarna and Clearpay, however in case you’re not, these schemes are types of credit score that allow you to make a purchase order instantly and pay it again over time. Many of those providers are interest-free, which is a part of the attraction.

To be clear, I’m not telling you to keep away from BNPL altogether, as they could be a low cost approach of accessing credit score. However there are a variety of pitfalls in terms of ‘purchase now, pay later’ that needs to be saved in thoughts earlier than utilizing such schemes.

<img src="https://static.independent.co.uk/2025/11/25/18/11/buy-now-pay-later-in-story-1.png" srcset="https://static.independent.co.uk/2025/11/25/18/11/buy-now-pay-later-in-story-1.png?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/11/25/18/11/buy-now-pay-later-in-story-1.png?quality=75&width=640&auto=webp 640w" loading="lazy" alt="" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

(iStock) Be careful for overspending

A golden rule for Black Friday – and for gross sales basically – is that you simply’re solely saving cash in the event you have been going to make the acquisition anyway.

The identical principal might be utilized to utilizing BNPL. Should you have been planning to purchase one thing, utilizing BNPL may help you unfold the associated fee, however seeing that Klarna or Clearpay is on the market shouldn’t be what pushes you to make the acquisition.

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Earlier than you hit checkout, ask your self: would I nonetheless purchase this if BNPL wasn’t accessible? “Should you wouldn’t be capable of pay the total quantity upfront, it might be a warning signal that the acquisition doesn’t suit your funds,” says Dr Mai.

Preserve monitor of your repayments

A part of why individuals like ‘purchase now, pay later’ choices is that you would be able to delay desirous about the monetary affect of your buy. However, in fact, that is solely kicking the can down the street.

Dr Mai recommends limiting the variety of BNPL providers you employ directly and conserving monitor of what you’ll must repay: “It’s simple to build up a number of repayments that hit all of sudden. A easy spreadsheet or budgeting app may help you retain monitor of due dates and complete excellent balances.”

<img src="https://static.independent.co.uk/2025/11/25/18/53/buy-now-pay-later-in-story-2.png" srcset="https://static.independent.co.uk/2025/11/25/18/53/buy-now-pay-later-in-story-2.png?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/11/25/18/53/buy-now-pay-later-in-story-2.png?quality=75&width=640&auto=webp 640w" loading="lazy" alt="" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

(iStock) Lacking funds can have an effect on your credit score rating

It’s essential to be sure to’ll be capable of afford your BNPL funds. Lacking these may end up in further charges and curiosity, which add up rapidly, and will harm your credit score rating.

Dr Mai says: “Work out whether or not the repayments will comfortably match into the subsequent few weeks of your funds, together with lease, payments and on a regular basis spending. If making the instalments means slicing again on necessities, it’s higher to stroll away.”

Although many Black Friday gross sales are marketed as limited-time provides, it’s higher to make an knowledgeable resolution you’ll be ok with – Dr Mai suggests ready 24 hours: “Should you nonetheless need the merchandise the subsequent day, and may afford the repayments, you’ll realize it was a rational resolution relatively than within the warmth of the sale.”

Purchase now, pay later isn’t regulated but

Proper now, BNPL is unregulated, which implies that shoppers have fewer choices in place if issues go unsuitable. That is regarding as, in accordance with Dr Mai, the individuals most prone to utilizing BNPL irresponsibly are people who find themselves already susceptible, resembling low-income individuals and people already in debt.

Nonetheless, that is set to vary from July 2026 when new guidelines come into drive. BNPL corporations should conduct affordability checks, give clearer details about the dangers concerned and supply further shopper safety if issues go unsuitable.