The real price of 'pay later'

Last year, at twenty-two, I owed money to four different apps at the same time. I was a student with a part-time job in a café, earning just enough for rent and food. None of it felt like debt. Each app was just a friendly button at the checkout that said I could pay later. I used them for a phone, then some trainers, then a laptop for my final year, then concert tickets. Every purchase was split into three or four small payments, often with no interest. It felt almost too good to be true.

That's because buy now, pay later is a loan, just a very easy one. There's no long form and no meeting at a bank. You click, and a decision comes back in seconds. Shops love it, and it's easy to see why. Studies have suggested that people spend more when they don't have to pay the full price at once.

My problem was keeping track. With four apps, I never had a clear picture of what I owed in total. Then, one week in October, five payments fell due together. I missed two and got hit with late fees, which add up much faster than you'd think. I ended up borrowing from my sister to keep up. Consumer groups in several countries have warned that this happens to a lot of users.

Governments have started to pay attention. In some countries, providers now have to check whether customers can actually afford what they're buying, the way banks do before a loan. Supporters say this protects students and people on low incomes. Critics argue it will slow things down and push some shoppers towards worse kinds of borrowing.

I still use one app, but only for things that can't wait, like the fridge that broke last spring. Before I click the button now, I ask myself one question: would I still buy this if I had to pay for it today? If the answer is no, I close the tab. If you're already behind on payments, contact the provider early or talk to a free debt adviser. Don't wait for the letters to pile up like I did.