How do 'Buy Now Pay Later' schemes work?

Q: With everything costing so much now, I’ve been struggling to make ends meet all year.

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I want to make sure Christmas is special for my kids but I’m worried about how I'll afford the extra expense.

I've noticed the option to buy now, pay later when shopping online but don’t understand how this works - can you advise me?

A: Firstly, we want to reassure you that you're not alone in finding things difficult - 4,377 Plymouth residents have contacted Citizens Advice for support with cost-of-living issues so far in 2025.

We also tend to hear from more people needing debt advice in January due to Christmas costs. Here’s what you need to know if you're thinking about using BNPL to manage your festive budget.

The most important thing to be aware of is that while Buy Now, Pay Later (BNPL) options are very easy to sign up for, they are still a form of money borrowing.

This means that, just like with other credit debts, there are consequences for not repaying or not paying on time.

These terms and conditions are not always very visible when signing up for BNPL at the checkout, and it may not be obvious that what you're being offered is a BNPL option.

This can lead to people being caught out by late payment fees and paying more in the long run, reduced credit scores and debt collection action.