‘I use buy now pay later scheme for everything

For Abi, a mother of four, the debts she racked up using buy now pay later (BNPL) services have left her stuck in a “vicious circle”.

Abi, from Sheffield, is one of several people who spoke to the BBC about the money they owed after using BNPL to buy essentials including food and school uniforms.

Five leading debt support organizations say they are seeing an increase in the number of families needing help with the types of debt that have accumulated through apps such as Klarna, Zilch and Clearpay.

Nearly 1.6 million people in England used these methods to spread the cost of household bills this summer, according to research from debt charity Stepchange.

Buy now, pay later services say their products have security measures to help customers manage their spending and offer support to those facing financial difficulties.

BNPL allows shoppers to spread purchase costs over weeks or months using interest-free credit. But debts can increase if people miss payments.

From next year, all BNPL applications will be regulated, leading to tighter affordability controls.

But in the meantime, debt advisers say people are using them “unsustainably” to “bridge the gap” in their budgets.

Soft credit checks mean BNPL providers are often not told whether people have borrowed money elsewhere; Therefore, they approve loans without knowing the general situation of the customer.

Abi started using BNPL when he was having a hard time financially.

“There’s a temptation to ‘Oh, I’ll use this today and pay for it when I get paid’ and spread it out over a few months,” says Abi, who is training to be a barber.

“Then you have to go back and live on it and then do it again.”

The 37-year-old player, who could not use a credit card due to his other debts, started using BNPL 3 years ago to make larger purchases.

She now uses multiple BNPL apps to buy everyday items like pet food, bus tickets and groceries, and chooses which supermarket to go to based on which BNPL coupons she can get.

Abi regularly buys a £40 weekly travel pass using his BNPL card at the checkout.

It pays an initial fee of around £5, which allows it to spread the cost over several payments. If refunds are delayed, another fee will apply.

Abi faced additional charges and interest after delaying multiple repayments and now owes around £3,000 to BNPL firms.

Five leading debt advice groups say referrals regarding BNPL debts are increasing.

Debt advice service Money Wellness says it has helped 44% more people buy now buy later pay off their debt in the year ending September 2025 compared to the previous 12 months, describing it as a “massive increase”.

The National Debtline and Business Advice Line, run by the Money Advice Trust, supported 11,000 people with such debts during the same period.

Citizens Advice says it has seen a 48% year-on-year increase and Christians Against Poverty says its clients’ BNPL debt has increased from 9% in 2023 to 14% in 2024.

Tom Gibbons of Money Wellness says the rising cost of living is “pushing people’s budgets to the limits”.

Food prices increased by 37 percent in five yearsThis means a food shop that cost £10 five years ago will now cost £13.70.

Mr Gibbons says Money Wellness is seeing a growing number of young single women with children seeking help with BNPL debts because they are “trying to bridge the gap and can’t make ends meet”.

Abi started to apply for a debt moratorium decision that would freeze his debts for 12 months. If your financial situation does not change, those debts can be erased, but your credit file will be affected for six years.

In August, a record monthly record of more than 4,200 debt relief orders were approved.

Jennifer, not her real name, owed £5,000 through BNPL before the debt relief order was approved in July.

The 26-year-old single parent from West Yorkshire says it has given her a “fresh start” and she no longer lives in fear of phone calls from debt collectors.

“I can finally breathe again,” he says.

He is one of many people who told the BBC it was “very easy” to access BNPL, adding: “You get into a pattern and before you know it it’s a big problem.”

But not everyone who uses BNPL has mounting debt.

Danielle, a single mother of five and home care assistant from Rotherham, says she is “responsible for it” and only uses what she can afford.

Where once she would apply to the food bank or borrow money from her parents in the run-up to payday, she now uses BNPL apps to buy essentials like shoes and school uniforms for her children.

“I know people who use it and worry about how they’re going to pay it back, but I don’t want to pay BNPL and have nothing to live on,” says Danielle.

“In the past, I would worry and be one of the last parents to buy what I could afford. Now, as soon as they finish school, I go out and buy all the uniforms.”

Many people who spoke to the BBC never imagined they would find themselves in debt.

“All it takes is an accident and you quit your job or get laid off and then suddenly you have no money and you still have to find the money to pay the BNPL,” Mr Gibbons says.

In response to the BBC’s inquiry, a spokesperson for Klarna said the firm would welcome new regulation by the Financial Conduct Authority (FCA) next year and that its “products are designed to help consumers avoid falling into debt”.

They say access to further credit will be restricted if payments are missed.

Zilch, a regulated FCA lender, says it has “affordability safeguards” to ensure customers “use our product responsibly.”

• Details of organizations offering debt help and support can be found at: BBC Action Line.