The Dangers of Buy Now, Pay Later

Let’s talk about Buy Now, Pay Later (BNPL) - It sounds like a sweet deal: split your payments, avoid interest, and stretch your budget without breaking a sweat. Klarna, Clearpay, and Laybuy have made it a breeze to click 'Pay Later' instead of 'Pay Now', but behind the pastel branding, there's a catch.

If you're renting, saving for a deposit, or even just trying to get your finances into a better place, BNPL might be doing you more harm than good.

 

What is Buy Now, Pay Later?

BNPL is a short-term financing option that lets you spread payments over weeks or months, often with 0% interest if paid on time. No fees, no fuss... right?

The catch? It encourages you to spend money you don't actually have. You might find yourself juggling multiple repayments, overspending, and chipping away at your financial goals without even realising it.

 

BNPL is Still Debt

It’s not a credit card, but it’s still debt. Miss a payment, and you’ll face late fees, potential hits to your credit score, and a trail on your credit report. Some providers even report your behaviour to credit agencies.

That’s a problem if you’re planning to apply for a mortgage.

Lenders are now paying attention to BNPL usage, especially if it shows up on your bank statements or open banking data. Regular use of BNPL can signal overspending or financial instability, even if you’ve never missed a payment. It raises red flags.

 

Why Mortgage Lenders Are Watching

Lenders dig deep when reviewing mortgage applications. They’re not just checking your salary – they’re analysing your spending habits, debts, and overall financial behaviour.

Regular BNPL usage can be a red flag. It signals you might be living beyond your means or relying on short-term borrowing to get by – not exactly what lenders want to see. Even if you never miss a BNPL payment, it can still limit how much a bank is willing to lend or whether they’ll approve you at all.

 

How Klink Can Help You Spot the Creep

If you’re using BNPL now and again for planned purchases and you’re making every payment on time, you’re probably fine. Especially if you’re doing it to keep cash in a savings account for a bit longer. Smart move.

But the danger lies in not realising how often you’re using it or how much it’s adding up over time.
That’s where Klink comes in. Klink connects to your bank accounts, tracks your BNPL spending, and flags risky repayment patterns that could hurt your mortgage chances.

Plus, Klink helps you set savings goals, plan your deposit, and build the habits that make you mortgage-ready.

 

Ditch the Debt Trap – Budget Better

BNPL might feel like a safety net, but real financial freedom comes from budgeting, saving, and planning ahead.

So, before you click 'Pay in 3', ask yourself: Would I still buy this if I had to pay in full today? If not, maybe hold off.

 

Final Thought – Keep Your Eyes on the Prize

BNPL isn’t all bad – when used wisely, it can bridge short-term cash flow gaps. But if it’s becoming a habit, it might be holding you back from your bigger goals.

Ready to get your finances on track? Download Klink to take control of your spending, build better habits, and get mortgage-ready - no spreadsheets, no guesswork, just progress.