14 November 2025
Rising Buy Now, Pay Later Debt
Recent news reports have revealed a sharp rise in Buy Now, Pay Later (BNPL) debt, with more people turning to services like Klarna, Clearpay and Zilch to help cover everyday essentials such as groceries, transport and school items.
As the cost of living continues to stretch household budgets, many families in our local community are using BNPL to bridge financial gaps — often without realising how quickly repayments and fees can escalate.
Local residents are increasingly telling us they feel overwhelmed by multiple BNPL payment plans, mounting charges, and the stress of trying to keep up. At Boom Community Bank, we’re seeing this rise firsthand and are committed to offering fair, affordable and ethical support to help people regain control.
Why BNPL Debt Builds Up So Quickly
Although BNPL services appear convenient, several factors make it easy for debt to rise unexpectedly:
1. Soft affordability checks
Most BNPL apps do not run full credit checks, meaning people can borrow even when finances are already stretched.
2. Multiple apps at once
It’s common for people to use several BNPL providers at the same time — each with different repayment dates.
3. BNPL used for essentials
With food prices, household bills and travel costs continuing to rise, many people now rely on BNPL for non-discretionary spending.
4. Extra fees for late payments
If a payment is missed, charges can quickly grow and make the situation harder to manage.
Upcoming BNPL Regulation
BNPL services are expected to become more tightly regulated next year, with stronger affordability checks and clearer information for customers. While this is positive progress, many local households are struggling right now, and need support before new protections come into force.
How Boom Community Bank Supports People in Our Community
As a community-focused bank, we’re here for local residents, offering responsible financial support that puts people first.
Here’s how we help those affected by BNPL debt:
1. Affordable alternatives to BNPL
We provide fair, transparent credit options that help members spread the cost of essentials safely — without confusing payment plans or unexpected fees.
✔ Clear terms
✔ Affordable repayments
✔ No hidden charges
✔ Ethical and community-focused
2. Helping simplify multiple BNPL debts
Many members come to us with several overlapping BNPL payments. We offer:
affordable, responsible consolidation options
simplified repayment plans
budgeting support tools
This can reduce stress and help people take back control of their finances.
3. Savings and budgeting support
We help members build sustainable saving habits, even starting with small weekly amounts.
Our approach is friendly, simple and supportive — never judgmental.
4. Guidance from a trusted local organisation
Our team understands the challenges facing local families and individuals.
We offer confidential help, and where appropriate, direct members to trusted partners such as Citizens Advice, StepChange or National Debtline for further support.
Local People, Real Support
The increase in BNPL-related debt highlighted in recent news mirrors what we are seeing in our community.
Whether someone is juggling multiple repayments or struggling to afford essentials, Boom Community Bank is here to help — locally, ethically and responsibly.
Need help with BNPL debt?
If BNPL payments are becoming difficult to manage, or you’d like to explore safer alternatives, our team is here for you.
