Pros and cons of 'pay later' schemes

Used carefully, BNPL can genuinely help people manage their cash flow. It offers convenience when you need something urgently but can’t immediately cover the full cost, and the interest‑free period can make it a cheaper option than using a credit card. 

For some people, spacing out the payments can make a significant purchase feel more manageable, particularly when faced with an unexpected expense such as replacing a fridge or repairing an essential appliance. 

But the ease of these services is also what can make them risky. Because the financial impact is delayed, it’s tempting to overspend. Small instalments can quickly add up, leaving people juggling several BNPL debts at once. 

Missed payments often incur hefty late fees, and depending on the service, this can also affect your credit score. 

BNPL providers may not offer the same level of consumer protection as credit cards either, including dispute processes if something goes wrong with your purchase. 

BNPL can be helpful when used responsibly for essential items and when you’re confident you can meet every instalment. But it’s wise to avoid it for impulse buying or when your income is uncertain. 

Ultimately, the key is to approach BNPL with the same care you’d apply to any other form of credit. 

The key is to read the terms, understand the fees, and be honest with yourself about your budget.