Buy now, pay later options sound great, especially if you are dying to get something but can’t pay the full amount.
There are platforms that offer interest-free buy now, pay later options, and the more you use their services, the more they increase your spending limit.
But there’s a risk, though, if you’re not disciplined and you keep clicking purchase. Do you understand how the options work and what will happen if you miss a payment?
Sanlam Credit Solutions business head, Afua Darko, warns that you should read the fine print because a missed payment can lead to consequences. “[With] a buy now, pay later (BNPL) option, you get the air fryer immediately, and your payments only start later. No interest. No waiting. It feels like a smart workaround, but there’s a catch in the fine print,” says Darko.
“If you miss a payment – even once – penalty fees and default charges can add up quickly, and when an account goes into default, it can even negatively impact your credit record in some cases.
“BNPL is designed to feel light, simple, and low-risk, and that’s what makes it tempting, but if it seems too good to be true, pause. Someone is carrying the cost, and the consumer is usually the one who pays it later.”
Darko urges customers to read the fine print. With Black Friday and the festive season around the corner, it is easy to miss the fine print as we rush to get some of those bargains.
“Before you enter a BNPL agreement, double-check you’ve read the fine print so you fully understand how long the interest-free period lasts (don’t assume six months) – and what happens if a payment is missed. Typically, if you default, there’ll be fees, interest, and penalties to pay,” says Darko.
“Additionally, some BNPL providers are members of the SA Credit and Risk Reporting Association, so a missed payment could be reported to and recorded by credit bureaus. Additionally, certain BNPL providers allow clients to change their payment terms into a credit agreement, which is then reflected on their credit report.
If you miss a payment – even once – penalty fees and default charges can add up quickly, and when an account goes into default, it can even negatively impact your credit record.
— Afua Darko, Sanlam Credit Solutions business head
“The bottom line? In some cases, a missed BNPL payment can negatively impact your credit score. If you’re worried you may already have missed a BNPL payment, check your credit record early. If a BNPL default is showing, focus on paying the outstanding amount as soon as possible, and then be very consistent with keeping other debt payments up to date to rebuild your score over time.”
DebtBusters’ Q3 2025 Debt Index which evaluates debt counselling applications, shows that 95% have a personal loan, and 57% have a payday loan.
DebtBusters executive head, Benay Sager, says consumers’ finances are “seriously” strained. “A further 22% use overdraft facilities regularly. Vehicle debt also seems to be increasing and is now making up a substantial portion of the incoming client cohort debt…
“While consumers’ financial confidence may have improved in 2025, income growth is still significantly behind expense growth. Since 2016, electricity tariffs have increased by 165%, the petrol price by 80%, and inflation’s (CPI) compounded impact is 51%.
“As a result, it is perhaps not surprising that consumers who applied for debt counselling in Q3 2025 needed 70% of their take-home pay to service their debt. [And] 95% had a personal loan – a new record...”
The report reads in part: On average, consumers have 32% more unsecured debt in 2025 compared to 2016. Those taking home R35k or more have 61% more unsecured debt than in 2016.
“This outpaces inflation (CPI) growth of 51% and is much higher than salary growth of 10% during the same period for the top earners… Predictably, higher-income earners have a larger proportion of secured debt, but middle-income earners feel the pressure of vehicle loans the most.”
Darko urges consumers to plan their purchases before a sale.
Track prices. Some Black Friday “deals” are not bargains. “Know the item’s usual price and your walk-away limit. Don’t wait for Black Friday – sales prices are often consistent throughout the month. Stress-test repayment,” says Darko.
“If instalments run every two weeks, where will the money actually come from? If you can’t afford it now, how will you afford it later?
“Black Friday is designed to create urgency. If BNPL is the only way you can afford the item, that’s your signal to step back and reassess. BNPL can work if you already know where the money is coming from. But if you are hoping something will change in the next pay cycle, that’s where the danger lies.”
Sowetan
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