As we all know, new Buy Now Pay Later rules came into effect on 15th July 2026. But with Black Friday just around the corner and 54% of UK adults having used BNPL previously – how will these new rules affect your Christmas shopping?
Planning ahead and budgeting now can help you spread the cost of Christmas early before January hits, rather than starting the new year with a credit bill looming.
What are the New Buy Now Pay Later Rules?
The new BNPL rules mean that companies must:
- Carry out affordability checks to make sure customers can afford to repay what they borrow before taking out an agreement.
- Offer Section 75 protection (on agreements made after 15th July 2026) for items that cost over £100 but less than £30,000.
- Provide clearer upfront terms showing a transparent breakdown of repayment amounts, due dates and late fee structures before the customer checks out.
Customers now also have access to the Financial Ombudsman so you can make a free complaint if something goes wrong or a problem isn’t resolved.
What are the Key Impacts of New Buy Now Pay Later Rules on Black Friday & Christmas Shopping?
When used responsibly, BNPL can help make budgeting easier (if you can genuinely afford the repayments and you keep track of the repayment dates).
But if used excessively, it can also encourage impulse buying and lead to multiple repayments stacking up at the same time.
New Buy Now Pay Later Rules: Pros
- More Realistic Black Friday & Christmas Shopping: Due to BNPL providers now carrying out affordability checks to assess whether you’ll be able to make the required payments, you’ll only be able to buy items you can genuinely afford to pay off.
- Full Refunds for Faulty Items Costing Between £100 and £30,000: New Section 75 protections allow you to get a full refund if an item costing between £100 and £30,000 is faulty or fails to arrive.
- Tip: For agreements made after 15th July 2026, you can claim the money back directly from the BNPL provider if the retailer refuses to help or has gone out of business.
- Better Budgeting: With clear summaries of repayments now shown to you before you enter into a BNPL agreement, you’ll be able to plan ahead and budget better when it comes to Black Friday sales and Christmas shopping.
New Buy Now Pay Later Rules: Cons
- Overspending & Overlapping Payments: Even with affordability checks in place, delaying purchases makes it feel easy to stack multiple BNPL agreements with repayments all landing simultaneously in the new year. For many, this is the most difficult time to budget for, thanks to December’s early payday and January’s late one.
- Late Fees & Interest Charges: Don’t forget that late fees and interest charges are still in place. If you miss a BNPL repayment, you could face the following from the UK’s main providers:
- Clearpay: An initial £6 late fee if the payment isn’t made by the due date, then a further £6 if it remains unpaid 7 days later. There are currently no late fees in place for orders under £24 (as of 10th November 2026).
- Klarna: An initial £5 late fee if the payment remains unpaid after 7 days. Total late fees cannot exceed 25% of the order and there are no more than 2 late fees per order.
- PayPal: No late fees but potential rejections from future borrowing.
- Zilch: No late fees but a negative impact on your credit score and a potential block on your account (if you miss too many payments).
- Account Closures: If affordability checks flag too many simultaneous purchases or repayment commitments, a reduced spending limit can be placed onto your account, or you can be blocked from using BNPL altogether. If you can’t afford to buy in other ways, this could mean no Black Friday or Christmas shopping at all.
How to Save More on Black Friday Sales & Alternatives to BNPL for Christmas Shopping
Money-Saving Tips for Black Friday Sales:
Research Price History
When Which? researched the price history of 2024’s Black Friday deals, they found that 83% of products on sale had already been available for the same price (or less) at other times of year.
That’s why you should always use a free online tool (such as CamelCamelCamel or PriceRunner) to check how much a discounted product has been sold for previously. From there, you can work out whether the new price actually offers good value or not.
Check for Price Match Schemes
Several retailers have ‘price match’ promises which allow you to claim a price match if you find an identical, in-stock product that’s cheaper at another UK-based retailer. Examples of these retailers include:
Know Your Tech Life Cycles
If your Black Friday shopping is going to involve purchasing some discounted tech, you’ll need to know your life cycles.
Most technology is released on a yearly basis, so you only need to wait 12 months before a new model is out. If you see a company’s latest release on sale during Black Friday, you might be tempted – but we would recommend checking the price of last year’s version first as it’s far more likely to be on sale!
Alternatives to BNPL for Christmas Shopping:
Spending Caps & Gifting Limits
It may be easier said than done, but we would recommend setting a spending limit per person and sticking to it. Don’t go overboard either, if your budget will only allow you to buy for close family members this year – leave it at that.
There are plenty of free* Android and iOS apps that will help you track your gifting, as well as let you set spending limits and individual budgets for each person on your list. Examples include:
- Santa’s Bag
- Christmas Gift List Tracker
- Christmas Budget Planner
- Manage Christmas / Gift List
*All of the above apps have free basic versions (some with ads) but some do include in-app purchases for extra features.
Secret Santa
You can also reduce the number of people you buy for by organising Secret Santa exchanges with family and friends. Always set a budget so everyone spends the same amount and choose one that’s affordable for the whole group.
Free websites you can use to organise a Secret Santa gift exchange include:
- DrawNames
- Elfster
- GiftList
- Secret Santa Organizer (supports 17 different languages, making it perfect for international groups!)
- Sneaky Santa
- My-Secret-Santa
We also have a free online Christmas gift cheque generator which you can use to create personalised gift cheques that your friends and family can redeem when they’d like you to do something special for them.
Shop Smart
Not every present has to be completely brand-new or super expensive. There are ways to shop smarter while still being thoughtful, such as:
- Shopping second-hand – you’d be surprised at the retro gifts you can find in charity shops that are perfect for an older relative or grandparent!
- Baking someone’s favourite sweet treats.
- Using cashback websites, such as Quidco and Topcashback (don’t let cashback lead you towards poor-value products) to earn as you spend.
Worried About the Cost of Christmas?
If you’re using borrowing as a way to cope with money worries, you’re not alone. In fact, 34.5% of our Debt Management Plan (DMP) clients have at least one BNPL debt included in their plan – that’s just over 1 in 3 people (as of November 2026).
Contact us to get free*, confidential debt advice from our friendly debt advisors today. Our free online debt advice tool can also break down your options in 10-15 minutes – which may include a debt solution, such as a DMP or Individual Voluntary Arrangement (IVA).
Alternatively, our team is available to chat over the phone, via email, through WhatsApp, or in a webchat.
*Our advice is free, but if you sign up for a debt solution, a fee will apply for some solutions.
