PICTURE: PEXELS/TIM DOUGLAS
Buy-now, pay-later (BNPL) services can make it tempting to buy something immediately and spread the cost over several instalments. While this can be convenient when used responsibly, multiple small payments can quickly become difficult to manage.
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The Consumer Financial Protection Bureau describes BNPL as a form of credit that allows consumers to purchase goods or services immediately and repay the amount through instalments. If you regularly use BNPL services, these simple habits can help you avoid accumulating unnecessary debt.
1. Ask yourself if you really need the purchase
Before choosing BNPL at checkout, pause and ask whether you would still buy the item if you had to pay the full amount immediately.
Splitting a R1,000 purchase into smaller payments can make it feel more affordable than it actually is. However, you are still committing to the full R1,000.
If the purchase is not essential, consider waiting until you have saved enough to pay for it outright.
2. Check your budget before using BNPL
Don’t assume that because you’re approved for a BNPL purchase, you can comfortably afford it.
Look at your upcoming income and expenses and check whether the instalments will fit alongside rent, transport, groceries, utilities, existing debt and savings.
The CFPB advises consumers to understand their finances and ensure BNPL payments fit within their budget before taking out the loan.
3. Keep track of every instalment
One of the easiest ways to lose track of BNPL debt is to have several purchases running simultaneously.
Create a simple list showing:
- What you bought
- The total amount owed
- Each payment amount
- Payment dates
- How many instalments remain
You could also use your phone’s calendar to set reminders before payments are due.
4. Avoid having multiple BNPL purchases at once
Taking out several small BNPL loans can make your overall debt much larger than it appears.
Research from the CFPB has highlighted the risk of loan stacking, where consumers accumulate multiple BNPL loans, potentially making it harder to see how much they owe across different purchases or providers.
Consider paying off one BNPL purchase before starting another.
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5. Don’t use BNPL for everyday essentials if you can’t afford them
Using credit to purchase something you genuinely cannot afford can create a cycle where part of your future income is already committed.
If you’re relying on BNPL for groceries or other regular necessities because there isn’t enough money available, it may be a sign that your broader budget needs attention.
6. Read the terms and conditions
‘Interest-free’ does not necessarily mean ‘cost-free.’
BNPL providers can have different rules around late payments, fees, automatic payments and other charges. The CFPB notes that many BNPL products charge late fees when payments are missed, while some banks may also charge overdraft or insufficient-funds fees when automatic payments are unsuccessful.
Before accepting an offer, check the total repayment amount and what happens if you miss a payment.
7. Make payments on time
Set aside the money for each instalment before the due date.
Missed payments can result in late fees, restrictions on future BNPL purchases and, in some circumstances, collection activity. Depending on the provider and circumstances, unpaid debt may also be reported to credit-reporting companies.
8. Don’t let discounts convince you to overspend
A sale or promotional offer can make BNPL particularly tempting.
Instead of asking, “How much will I pay per month?” ask, “Do I actually have room in my budget for the full purchase?”
A discount is only useful if the purchase was something you could afford and genuinely needed in the first place.
9. Give yourself a cooling-off period
For non-essential purchases, try waiting 24 hours before checking out.
You may discover that you no longer want the item—or that you would rather save the money for something more important.
10. Pay off existing BNPL debt before taking on more
If several instalments are already coming off your account each month, consider putting new BNPL purchases on hold.
Focus on clearing what you already owe and rebuilding some breathing room in your budget.
BNPL should not replace budgeting
BNPL can be useful when you understand the repayment terms and can comfortably afford the purchase. But the convenience of smaller instalments can make it easier to underestimate the amount of debt you’re taking on.
The best way to avoid BNPL debt is simple: know what you owe, understand when payments are due and don’t borrow for purchases you cannot afford.
If you are already struggling with multiple debts or missed payments, consider speaking to a qualified financial adviser or debt counsellor rather than taking out additional credit to cover existing repayments.
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