‘Buy now, pay later’ warning for North Devon residents this Christmas

Every year, as the festive season approaches, we’re surrounded by Christmas adverts, social media posts and endless lists of ‘must-have’ gifts.

It’s easy to get swept up in the excitement and want to make Christmas as magical as possible for the people we love. But the truth is, that magic doesn’t come from debt.

Recently, more and more online retailers have been offering tempting ‘Buy Now, Pay Later’ (BNPL) options such as Klarna, Clearpay and PayPal Credit, encouraging us to spread the cost of purchases.

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While paying via instalments can be useful and interest-free periods may help with short-term cash flow, it’s important to remember that BNPL is still real debt and there are consequences if you fall behind on repayments.

One of the biggest concerns is how easy it is to lose track of multiple payments. And although many schemes advertise ‘no interest’, they often charge late fees if you miss a payment. It’s easily done; life happens, an unexpected bill arrives and suddenly that ‘easy’ option becomes a real headache.

It can be a slippery slope, often starting with the simple desire to make Christmas special. But Christmas isn’t about how much we spend, it’s about time, kindness, community and connection. No gift is worth months of stress.

Four things to think about before you click that BNPL box:

Watch out for late fees: Missing a payment can cost you. Late fees often start at £5 and can rise to as much as 25% of an item’s price.

Know the score: Missed payments may be reported to credit reference agencies, affecting your credit score and future borrowing.

Less protection: BNPL purchases don’t always offer the same rights and protections as credit card payments, which can make disputes over damaged or missing goods harder to resolve.

Multiple payments add up: Managing several instalment plans at once can quickly become confusing, making it harder to stay in control of your money.

Here at North Devon Homes, we’ve had customers contact us after struggling to pay their rent while juggling BNPL instalments, credit cards and overdrafts. It can feel overwhelming.

That’s why, before you consider these schemes, please remember that your rent should always come first. Keeping your home secure is the most important payment you make.

So, this year, set yourself a realistic budget and stick to it. Consider homemade gifts or shared experiences instead of costly presents. Have honest conversations with your family about what really matters.

It’s not always easy, but imagine how good it is to have a wonderful Christmas knowing you can start the new year without any debt.

The most important advice is to only use BNPL for purchases you know you can afford to repay with your own money, either immediately or within the agreed instalments. It should never be a way of talking yourself into buying more than you need.

The best gift you can give yourself and your loved ones this Christmas is peace of mind.