Household budgets are under strain as everyday costs are rising, and many people are relying on credit to make ends meet. UK consumer debt is on the rise, and a surprising culprit behind this trend is the growth of “buy now, pay later” (BNPL) schemes.<h2 id="eee8b2e7-e77c-4db5-a5af-35574458e1f2" data-toc-id="eee8b2e7-e77c-4db5-a5af-35574458e1f2">UK Household Debt Is on the Rise</h2>UK households have taken on more debt than ever in recent years. Unsecured personal debt for things like credit cards, loans, and overdrafts is now at its highest level in a decade. Debt charity <a target="_blank" href="https://www.stepchange.org/">StepChange</a> reported that their clients’ average unsecured debt reached £14,654 in 2023, over £1,000 more than the previous year. For 2025, the figures are even higher. With energy bills, food, and rent all climbing due to the cost-of-living crisis, it's no surprise that many people have turned to credit just to cover the basics. Debt advisors have seen a surge in people seeking help as more households use credit to keep up with essential bills. It’s a dangerous cycle and it’s in this context that Buy Now, Pay Later has exploded in popularity.<h2 id="c4f2d4dc-4bb4-4821-af20-3912ec713ecb" data-toc-id="c4f2d4dc-4bb4-4821-af20-3912ec713ecb">BNPL: Convenience at a Cost</h2>BNPL (Buy Now Pay Later)&nbsp; has quickly become part of everyday shopping in the UK. Companies like Klarna and Clearpay let you split or delay payments on purchases, often interest-free if you pay on time. It’s easy to see why that appeals when money is tight: BNPL lets you get what you need now and pay later. During the pandemic and the cost-of-living squeeze, BNPL usage skyrocketed, more than quadrupling in size since 2020.In one survey, a quarter of BNPL users said they turned to it because of rising living costs. BNPL is also easy to use, which makes it tempting to choose "Pay in 3" instead of going without.However, the convenience can be misleading. Eventually, the payments come due, and plenty of people are struggling to pay them back. About one in four BNPL users have missed a payment in the last six months. Those missed instalments can trigger late fees or even debt collectors.Another warning sign is what BNPL is being used for. It’s not just electronics or clothes; a Citizens Advice study found 35% of regular BNPL users had used it for groceries. That means some households are now buying food on credit, which shows how tight budgets are.BNPL is still debt, just packaged in a friendlier way. Research shows people with BNPL debt are about three times more likely to be in financial difficulty than the average adult. So, if you use BNPL, treat it with caution and try not to depend on it for everyday needs.<h2 id="366394d7-c828-41c3-9edf-5d100d1aa40f" data-toc-id="366394d7-c828-41c3-9edf-5d100d1aa40f">Practical Steps to Avoid Debt Traps</h2>The good news is that if you’re feeling the squeeze, help is available. Here are some steps to protect yourself and avoid falling into a debt cycle:<ul><li style="color: rgb(0, 0, 0)">Prioritise essentials: Make sure crucial bills (rent or mortgage, energy, council tax, food) are paid first. Cut back on non-essentials where you can so you don’t fall behind on the basics. If you’re juggling multiple debts, focus on priority debts (like housing or utility arrears) before credit cards or BNPL. Missing priority bills can lead to serious consequences. </li><li style="color: rgb(0, 0, 0)">Be careful with BNPL: Try not to rely on BNPL for routine expenses. If you’re thinking of using a "pay later" option for groceries or bills, pause and take a hard look at your budget. Even though BNPL can be interest-free, missing payments can mean fees and hurt your credit. Save it for occasional treats or purchases only if you’re sure you can pay it off on time. </li><li style="color: rgb(0, 0, 0)">Check for support: Make sure you’re getting any financial help you qualify for, like government benefits or council grants to help with bills. Use resources like<a target="_blank" href="https://www.moneyhelper.org.uk/"> MoneyHelper</a> (a free government service) to see what support you might be missing. If you’re already behind on payments, contact your creditors early. Many utility companies and lenders have hardship programs and can work out a payment plan if you explain your situation. </li><li style="color: rgb(0, 0, 0)">Get free debt advice: You're not alone, and talking to an expert can help.<a target="_blank" href="https://www.stepchange.org/"> StepChange</a> and<a target="_blank" href="https://capuk.org/"> CAP UK</a> (Christians Against Poverty) offer free debt advice and can help you make a plan.<a target="_blank" href="https://www.citizensadvice.org.uk/debt-and-money/"> Citizens Advice</a> can also guide you through your options. These services will help you prioritize your debts, talk to creditors, and find a solution that fits your situation. </li></ul>Remember that anyone can fall into financial difficulty, so there’s no shame in seeking help. The sooner you take action – whether by trimming expenses, avoiding new credit, or reaching out for advice – the sooner you’ll feel some relief. You’re not alone, and with the right support, you can get through tough times.I struggled with debt in the past, too, and one of the resources that helped me was a book by David Ramsey called <a target="_blank" href="https://amzn.to/4n8Exnj">The Total Money Makeover</a>. This challenged me and helped me transform my finances while I cleared the huge debt I had accumulated over a few years.&nbsp;RememberOther than providing accounting and tax services to those who run businesses, I host periodic workshops covering a range of financial topics to help you stay informed and empowered. Suppose you’re feeling overwhelmed or unsure about your financial journey &amp; would like to consider personalised financial coaching. In that case, I provide the support, guidance, and educational tools you need to achieve your financial goals with confidence. Full information for 1:1 coaching or group workshops is updated <a target="_blank" href="https://linktr.ee/SalomeRu">here</a>.Contact: <a target="_blank" href="mailto:hello@salomeru.com">hello@salomeru.com</a>

UK consumer debt is on the rise, and a surprising culprit behind this trend is the growth of “buy now, pay later” (BNPL) schemes.

The Buy Now Pay Later Life 

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The Buy Now Pay Later Life

The Buy Now Pay Later Life

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