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1.6m Britons blocked from buy now, pay later as new rules kick in today

From today, over 1.6 million people in the UK will be locked out of using buy now, pay later (BNPL) services like Klarna. It sounds harsh, but it’s actually good news for your finances — here’s why.

Buy now, pay later has become a trap for millions of everyday shoppers. You click “defer payment” on a £150 make-up purchase, thinking it’s harmless. But as one 25-year-old from Bristol found out, it spirals. What started as a small purchase turned into £2,000 of BNPL debt used for everything from takeaways to clothes. And once each bill came due, there was nothing left for essentials — so she’d use BNPL again. The cycle never stopped.

This is exactly what regulators wanted to prevent. From today, BNPL services face strict new rules designed to protect borrowers. Lenders must now carry out proper affordability checks before letting you borrow — similar to credit card companies. They’ll check whether you can actually afford to repay, not just whether you have a saved payment card on file.

The downside? Those 1.6 million people who may have been relying on BNPL to stretch their money will be refused. But here’s the reality: if you’re being blocked, it’s likely because you can’t afford the debt in the first place.

The new rules are a watershed moment. BNPL used to feel “free” because there were no warnings and no letters explaining how it worked. You’d click once and £150 became four payments without really thinking. Now, lenders must be upfront about how the service works and what happens if you miss a payment.

If you’ve been using BNPL to cover everyday spending, now is the time to break the cycle. Create a simple budget, work out what you actually earn versus spend, and build a small emergency fund — even £50 a month helps.

If you’re already in BNPL debt, contact StepChange (0800 138 1111) or Citizens Advice for free, confidential help. Don’t ignore it and hope it goes away.

The regulations change today. Make today the day you change your approach to borrowing too.