It’s tempting. You see something you want, click “Buy Now, Pay Later,” (BNPL) and boom—you’ve got it without paying the full amount upfront. Sounds great, right? Or maybe not!
BNPL services like Afterpay, Klarna, and Affirm seem helpful, but they come with some hidden problems. Here’s why using them is a bad idea.
1. They make it easy to overspend
BNPL splits your payment into smaller chunks, usually over weeks or months. That can trick you into thinking forgetting how much something actually costs. For example, a $200 pair of shoes paid in 4 instalments over 8 weeks feels like “oh, it’s only $50 this week.” That might lead you to buy things you don’t really need, or buy more things —possibly leading you to buying things you can’t afford.
2. You can fall behind on payments
Even though your payments are automatically taken from your linked debit or credit card, if you don’t have enough money to meet the payment you will fall behind with your payments. If you miss a payment, some BNPL companies charge late fees. Others might report it to credit agencies, which can hurt your credit score.
Missing a few small payments might not feel like a big deal… until you’re hit with fees or your credit score drops.
3. It’s still debt!
Even though it doesn’t feel like a loan, it is. You’re borrowing money and agreeing to pay it back. Debt is debt, even if there’s no interest.
The more BNPL purchases you make, the more debt you’re juggling with. And because it is often small amounts it is tempting to keep adding more and more – and can quickly add up to a big debt, which will cause you stress.
4. You might forget you owe money
BNPL payments are automatic, but that doesn’t mean they’re invisible. If you don’t have enough money in your account when a payment is due, you could get:
Hit with overdraft fees from your bank
Late payment fees from the supplier
Blocked from using the service again
Put into collections (in extreme cases)
5. Returns Can Be a Headache
Bought something you didn’t like? Returning it doesn’t always stop the payments right away. You might still owe a payment while you wait for the refund to go through.
In summary
BNPL might seem like an easy fix when money’s tight, but it can create more problems than it solves. You’re better off saving up and paying in full. That way, you avoid debt, stress, and surprise fees.
Maybe BNPL = Buy Now, Panic Later
Think before you click. If you can’t afford it now, you probably can’t afford it later.
