Buy Now, Pay Later (BNPL) schemes have become extremely popular over the past few years, offering a quick way to access credit for purchases, often with no interest. However, despite being incredibly helpful, that ease of use does have a cost.
According to a recent survey by the FCA, around 11 million people in the UK used a BNPL service in the last year. While many found it helpful, some have ended up spending more than they could afford.
Until 2025, Buy Now Pay Later firms did not need to check if borrowers could afford repayments, and as a result, people took on debt without fully understanding the risks. This made it much easier to borrow, but harder to repay.
To tackle these issues and protect consumers, the government has now introduced new BNPL rules. These rules will ensure BNPL providers check affordability and offer clearer information. The goal is to bring BNPL in line with other credit lenders and prevent shoppers from falling into debt traps.
These changes are long overdue, but what do they actually mean if you’re already feeling stretched financially? And how do they affect people who’ve previously relied on BNPL to get by?
In this piece, we’ll break down what’s changing, how it could impact your debts, and where to turn if you need safer, more supportive credit options. Let’s get started.
An In-Depth Look at the New BNPL Rules & Implications
The UK government is tightening rules around BNPL services. Until now, BNPL has been significantly less regulated than other forms of credit. It has been a grey area that has led people into debt cycles.
Under the new BNPL rules, all BNPL lenders must run affordability checks before approving purchases. They have to make sure you can afford the repayments in order to avoid causing financial problems for borrowers down the line.
Providers also need to be more transparent about their terms and conditions. You should know exactly how much you owe, when payments are due, and what happens if you miss a due date.
Additionally, if problems arise then refunds should be offered quicker. What’s more, you’ll be able to take complaints to the Financial Ombudsman Service, offering an independent way to resolve disputes.
From now onwards, BNPL will be treated more like other regulated credit services meaning providers will need to be more transparent. If you’re one of the 11 million annual BNPL users, this means better protection and fewer surprises.
How the New Rules Affect Popular BNPL Providers
All of the biggest names in the UK BNPL space will be affected by these changes, including Klarna, Clearpay, Payl8r, and Monzo. These providers have grown rapidly by offering quick, interest-free credit at the point of sale.
Under the new BNPL rules, all these firms will be required to carry out affordability checks before approving purchases. They’ll also need to be clearer about payment terms and provide better customer support.
These new regulations are guaranteed to formalise the BNPL process and offer stronger protections for consumers.
How This Affects Your Debts
The new rules could change how you manage your debts. If you’re already using BNPL services, these rules won’t erase what you owe. However, they aim to help prevent you from becoming stuck in a debt trap.
The key change is that your future BNPL borrowing will be more carefully checked. With this change, you’re less likely to be approved for payments you can’t handle, helping stop debts from piling up without you realising.
For current debts, increased transparency from lenders means borrowers will know exactly what’s owed, when it’s due, and what will happen if a payment is missed. The aim is to make it easier for borrowers to manage their finances.
While these rules are implemented to protect shoppers, they can only go so far. If you’re already juggling multiple BNPL repayments and other debts, it might still feel overwhelming, especially if they’re all due at different times.
The rules might help you going forward, but they won’t undo the debt that’s already there. If your finances are tight and it’s getting harder to manage existing BNPL debts, what can you realistically do about it?
4 Effective Ways to Handle BNPL Debt Moving Forward
With the new BNPL rules in place, providers are under pressure to act more responsibly. That said, at the end of the day, it’s still up to you to manage your debt and stay ahead of new commitments.
Here’s how you can regain control of your finances and keep things manageable:
1. List Everything You Owe
You’ll need to start by tracking all your BNPL purchases. Include the total amount, repayment dates, and any late fees, and evaluate your current financial situation through your budget. Clarity makes it easier to spot what needs attention, allowing you to prioritise your debts.
2. Prioritise What’s Most Urgent
Once a list is made, it’s best to focus on the payments with the highest fees or closest deadlines first. Clearing these first helps avoid further charges and reduces pressure, making it easier to get on top of your debt long term.
3. Talk to Providers Early
If you’re at risk of missing payments, you should get in touch with your BNPL provider beforehand. Under the new rules, they have to treat you fairly. They could potentially pause payments, reduce fees, or offer more flexible repayment plans, giving you more options if you speak up early.
4. Consider Consolidating
If you’re juggling too many BNPL payments, looking into a low-interest personal loan to combine multiple debts could simplify things. Just make sure the new terms are manageable before making the switch.
For Financial Support and Tips, Think Salad
BNPL makes it easy to say yes in the moment, but can be tough to manage later. Managing your debts can feel like a never-ending cycle, especially when you’re juggling multiple payments throughout the month.
If you’re struggling financially and need a helping hand, we may be able to offer support. At Salad, we make affordable loan options available for almost every employed UK citizen. We know that the credit score system isn’t always fair, which is why we use an open-banking-based assessment to evaluate the financial situation of every applicant, rather than a credit score check.
We’re an FCA-regulated and authorised organisation, so you can trust us to keep your financial data safe. Our ‘More Than Your Score’ loans can help you regardless of your credit score.
To learn more about our personal loans, click here and to read more blogs like this one, visit our blog page now.
