Buy Now, Pay Later: Convenient credit or a silent debt trap?

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Over the last few years, Buy Now Pay Later (BNPL) has become the hottest new way to shop. From groceries to gadgets, apps and e-commerce sites tempt you with the promise of “zero-cost EMIs” or “split into three payments”. It feels painless—you get the product today and spread the cost over weeks or months. But is it really safe, or just another way of piling up debt? Let’s break it down.

Why BNPL looks so attractive

The big lure is instant access without paperwork. Unlike credit cards, BNPL approvals are quick and often need little more than your phone number and PAN. For youngsters without a credit history, it feels like a simple gateway to short-term credit. The catch? That very ease can make overspending just as easy.

Hidden charges behind “zero-cost”

Most BNPL schemes market themselves as “no interest” if you repay on time. But miss a deadline and the charges hit hard—late fees, penalties, and in some cases, steep interest rates that rival credit cards. What was meant to be a free split-payment option can suddenly become costly debt.

Impact on your credit score

Not everyone realises this, but BNPL transactions are reported to credit bureaus. Delayed or skipped payments can pull down your CIBIL score, just like a missed EMI. And with multiple BNPL accounts open across apps, it’s easy to lose track of due dates and fall into a debt spiral that quietly damages your creditworthiness.

Debt trap for the unaware

The biggest risk is psychological. Because you don’t feel the pinch immediately, BNPL often encourages you to spend more than you can afford. Multiple small purchases add up, and when all the repayments hit at once, borrowers are left scrambling. That’s why experts warn that BNPL, while useful in emergencies, can be a slippery slope for the undisciplined.

How to use BNPL smartly

BNPL isn’t evil—it can be safe if you treat it with the same caution as a credit card. Use it for essentials, track your repayment dates religiously, and don’t juggle too many apps at once. If you’re prone to impulse shopping, it may be better to avoid BNPL altogether and stick to debit or planned credit.