The Growing Risks of Buy Now, Pay Later Shopping

Buy now, pay later schemes such as Klarna and Clearpay are increasingly popular for Christmas shopping, allowing people to spread out payments. However, these schemes can create a vicious cycle of debt, with fees charged for missed payments and little time given to repay. A recent survey found that more than a quarter of British adults will use buy now, pay later for Christmas shopping, and many struggle to keep up with other bills. Users often see it as an easy option, but it can lead to financial difficulties and even affect credit scores. Debt charity Step Change advises people to consider whether they can afford the repayments before using these schemes. The government plans to regulate buy now, pay later products, but a timeframe for implementation has not been set.