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<\/p>\nCHECKING her bank, Courtney Cross realises she has less than \u00a3100 in her account to last her for the next two weeks.<\/p>\n
The mum-of-one re-checks her budget and a shot of fear goes through her as she realises her outgoings will be more than \u00a3250 in the next fortnight leaving her \u00a3100 short.<\/p>\n
\n<\/p>\n
She needs groceries, nappies, loo paper, petrol and has bills to pay.<\/p>\n
That\u2019s when Courtney, 26, opens one of her four buy now, pay later (BNPL) apps on her phone and takes a deep breath.<\/p>\n
\u201cThis week I am buying my groceries now and paying next month. <\/p>\n
"I bought nappies courtesy of Klarna on Amazon and loo roll is coming from another BNPL app", she tells The Sun.<\/p>\n
\u201cI used to only use these pay later schemes for big purchases. Now I am buying food and basics.\u00a0<\/p>\n \u201cI am using BNPL to buy milk, sausages, and bread. This is not a one-off. It is terrifying.\u201d<\/p>\n \u201cThe cost-of-living crisis means I, and millions of other people like me, are buying cereal, butter, eggs and yoghurt on pay later schemes.\u201d<\/p>\n The hairdresser is not alone in using BNPL for basics.<\/p>\n <\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n In September 2023 Money and Pensions Service (MaPS) research\u00a0revealed almost\u00a0two million shoppers who use BNPL are now using it for essential items such as groceries.<\/p>\n Of the one in five households using BNPL for essentials,\u00a011% are buying food, and 8% toiletries and hygiene products.<\/p>\n Another 5% use BNPL for household bills and 4% for fuel.<\/p>\n The Financial Conduct Authority (FCA) has found a significant increase in people using them. <\/p>\n The latest FCA statistics show 27% of UK adults had used BNPL to buy something during the six months to January 2023 – up from 17% in the 12 months before.<\/p>\n Shoppers who frequently used BNPL are more likely to be in financial difficulty, including missing bill payments and experiencing rising debts, according to the FCA.<\/p>\n But according to Courtney, who is mum to 18-month-old Wren, when you\u2019re a parent and need food or bills paid BNPL provides an easy solution.<\/p>\n \u201cGrocery prices are through the roof, petrol prices are skyrocketing, and winter is coming,\u201d she said.\u00a0\u00a0<\/p>\n \u201cWinter has started and there is no \u00a366 monthly rebate [on energy bills] this year. We are all facing a crisis and BNPL is too easily available.<\/p>\n \u201cYou tell yourself you\u2019ll only use the BNPL scheme \u2018this once\u2019 for essentials. <\/p>\n "But the \u2018breathing space excuse\u2019 is a band-aid \u2013 it is not fixing anything,\u201d she says.<\/p>\n Courtney first started using the BNPL schemes three years ago.<\/p>\n \u201cFriends told me about the schemes, and I thought I'd sign up just in case,\u201d she said.<\/p>\n \u201cI am very careful with money and run a hair salon and budgeting is critical.<\/p>\n \u201cYou don't need a full credit search with these schemes,\u201d she says,<\/p>\n Courtney signed up to Klarna, Clearpay and two PayPal schemes including pay in three, and their buy now pay later offer.<\/p>\n \u201cWhen I was five months pregnant with my daughter in December 2021, I used BNPL to buy her \u00a3450 cot,\u201d she added.\u00a0<\/p>\n \u201cI knew after the birth money would be tight and BNPL made sense.\u201d<\/p>\n However, in the last 12 months, Courtney\u2019s finances have been pushed to breaking point by energy bills, petrol costs and grocery prices.<\/p>\n \u201cI work as a hairdresser. I can't increase my prices in line with grocery prices. I\u2018d lose all my clients,\u201d she said.\u00a0<\/p>\n \u201cI work longer hours, but the hikes mean I have to do way more for way less.<\/p>\n \u201cThat\u2019s why I have been relying on buy now, pay later schemes for groceries, nappies, toilet paper and even a takeaway.<\/p>\n \u201cI was shocked when I discovered you could Klarna a pizza, but occasionally it's a treat.<\/p>\n \u201cIn the last four months, I have been using a range of BNPL schemes for grocery shops, a bulk purchase of two dozen nappies on Amazon or to bulk-buy loo paper.<\/p>\n \u201cIt\u2019s happening so regularly now I juggle four BNPL schemes for bills, groceries and basics. It\u2019s no longer special purchases.\u201d<\/p>\n \u201cI have gone from once a month to using the schemes up to three times a week.<\/p>\n \u201cI have vowed after Christmas to get on top of my finances but currently if I need to Klarna nappies or use Clearpay for groceries I will.<\/p>\n \u201cI won\u2019t be giving expensive gifts for Christmas. I\u2019d have to use BNPL schemes. It\u2019s a case of small presents and a better budgeted new year.\u201d<\/p>\n \u201cI won\u2019t be giving expensive gifts for Christmas. I\u2019d have to use BNPL schemes. It\u2019s a case of small presents and a better budgeted new year.\u201d<\/p>\n Courtney owes almost \u00a3500 on various schemes and knows it can be a spiral of economic crisis.<\/p>\n \u201cIf I keep using the schemes so regularly, my monthly payments will be impossible to meet,\u201d she said.\u00a0<\/p>\n \u201cThat's the terrifying thing. I am now working more shifts and taking on a second job in the form of a side hustle. <\/p>\n "I have started making custom vinyl for everything from cars to Mrs Hinch-style jar labels to make sure I can wean myself off BNPL.<\/p>\n \u201cIt is scary because when you only use the schemes once a month you can properly forward plan a budget. Using them weekly means you lose control.<\/p>\n \u201cPaying a tenner here and \u00a320 seems small but when you\u2019re doing that multiple times and spreading the cost just to make dinner you will never get ahead.<\/p>\n \u201cDoing a grocery shop on BNPL or picking up nappies and loo roll and putting on a system that means you use or eat the items now and pay later can make you feel like you\u2019re in control but actually you\u2019re not.\u201d<\/p>\n \u201cI started using BNPL so I didn\u2019t accrue credit card debt and high interest rates. I now know if I don\u2019t make payments it means my credit file will be affected.<\/p>\n \u201cHowever, having to use the schemes for daily household items and food means it is a downward spiral of debt.<\/p>\n \u201cI have missed payments and that meant juggling to ensure I didn\u2019t get a black mark with the apps."<\/p>\n Courtney wants spending caps put on BNPL schemes and more advice for customers so they can learn to cope with this growing crisis.<\/p>\n Energy and debt advice groups warn that using BNPL schemes for groceries and meals is a \u201creally worrying\u201d development and is a sign that individuals and families are having to resort to increasingly \u201cdesperate\u201d measures to cover basic expenses.\u00a0<\/p>\n Energy Support and Advice UK, which runs a Facebook-based advice service for consumers worried about their bills, is urging people to treat buy now, pay later offers to help with rising energy costs with \u201cextreme caution\u201d after detecting an increasing number of posts about such financing arrangements.<\/p>\n Meanwhile, Citizens Advice and other financial experts say there are cheaper ways to borrow and budget than using BNPL schemes, if you tend to fall behind on payments.<\/p>\n For example, you may want to talk to your bank and arrange an overdraft instead, but this may come with interest so check first.<\/p>\n If you have a low income and need emergency help with money, check if your local council has emergency funding schemes, and talk to local charities offering cost of living grants and support.<\/p>\n Money experts recommend doing a weekly and monthly budget, which can be tricky if you already have lots of BNPL agreements.\u00a0<\/p>\n However, it\u2019s important to keep note of how much you are paid, what you owe, when the payments are due and add reminders as advance warnings to help you budget.<\/p>\n The most common pressures to use BNPL are for emergencies, Christmas and birthdays.<\/p>\n Keeping a budget can help you prepare for these expenses in advance.<\/p>\n It\u2019s important to use a realistic budget and add a section for sundries and emergencies.<\/p>\n Long-term planning should include a section for birthdays and Christmas.<\/p>\n Try to put money away for these each month and review your budget regularly.<\/p>\n It\u2019s important to note that falling behind on BNPL payments can impact your credit score.\u00a0<\/p>\n Certain BNPL lenders also make a "hard" credit check every time you spread payments over a long period, which will appear on your record.\u00a0<\/p>\n A Klarna spokesperson told The Sun: "We have a number of safeguards to protect consumers and ensure they\u2019re able to meet repayments, including robust eligibility checks on each and every transaction and restricting our services if there are missed payments to stop debt building up. <\/p>\n "These guardrails clearly work as our loss rate is below 1%, 30-40% lower than what you\u2019d see on a credit card."<\/p>\n While a spokesperson for Clearpay said: "Clearpay\u2019s business model is designed to encourage customers to pay on time, differentiating it from credit card providers that thrive when consumers revolve in debt. <\/p>\n "When choosing a BNPL provider, we advise consumers to use a service, like Clearpay, that has customer protections built in, such as pausing accounts if a single payment is missed, to avoid accruing debt. <\/p>\n "Clearpay advises shoppers to buy only what you can afford, reschedule repayments if needed, and use email and text message reminders to make sure payments are made on time and there is money in your account."<\/p>\n The Sun also contacted PayPal for comment. <\/p>\n![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/04\/2BH4J54jpg-JS628108490.jpg\")
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How it started<\/strong><\/h2>\n
\u2018I\u2019m working extra hours to wean myself off BNPL\u2019<\/h2>\n
Be aware of the <\/strong>risks<\/h2>\n
Create a budget to help you cope<\/strong><\/h2>\n