BNPL — When "Pay Later" Becomes a Debt Trap
Buy-Now-Pay-Later is a loan disguised as "convenience." In Germany, half of young people's debt counseling cases involve these services [1].
What BNPL Really Is
BNPL (Buy Now, Pay Later) is a loan. Even though providers market it as a "payment method," services like Klarna, PayPal, Afterpay, or shop-specific solutions work the same way:
| What They Say | What It Means |
|---|---|
| "Pay later" | Take out a loan |
| "Pay in 30 days" | Payment deadline with risk |
| "In 3 payments" | Installment loan |
| "Flexible payment" | Revolving credit with interest |
The Reality
50% of debt counseling cases among young people involve BNPL [1]. For the 18-30 age group, this is the primary path into the debt spiral [2].
The Numbers
| Statistic | Value | Source |
|---|---|---|
| Young people (18-30) using BNPL | 45% [3] | Schufa Kredit-Kompass 2024 |
| Debt counseling involving BNPL | 50% [1] | Schuldnerberatung 2024 |
| Average BNPL debt when over-indebted | €2,500-3,500 [2] | Verbraucherzentrale 2024 |
| Users who miss payment deadlines | 8-12% | BNPL industry 2023 |
Why BNPL Is Dangerous
1. Psychological Tricks
| Trick | How It Works |
|---|---|
| Reduced "pain of paying" | No immediate cash outflow = less discomfort |
| Small amounts | "Just €30" — but 10 times = €300 |
| Instant gratification | Get it now, think later |
| Normalization | "Everyone does it" |
2. Hidden Costs
| Situation | Cost |
|---|---|
| Paid on time within 30 days | €0 |
| Missed payment | Reminder fees (€5-15) |
| Installment plan with interest | 10-15% annual rate |
| Collections | €50-100+ additional [4] |
3. Schufa Impact
From March 2026, BNPL usage is explicitly tracked in the Schufa score [5]:
| Behavior | Impact |
|---|---|
| Occasional, on time | Neutral |
| Frequent, on time | Potentially negative (multiple micro-credits) |
| Late | Negative (each missed payment) |
| Collections | Very negative, visible for 3 years [6] |
The Debt Spiral
This is how it typically starts:
1. First BNPL: "Just once, I'll pay in 30 days"
↓
2. More BNPL: "It worked last time"
↓
3. Overlap: Multiple BNPL open at once
↓
4. Missed payment: Fees
↓
5. New BNPL for old BNPL: "I'll pay next month"
↓
6. Collections: Schufa entry, additional costs
When BNPL Is (Maybe) Okay
BNPL is not inherently evil, but only makes sense under certain conditions:
✅ Acceptable Use
- You already have the money in your account
- You're waiting for delivery and don't want to wait for refund if it doesn't work out
- It's a one-time, planned purchase
- You use BNPL max 1-2 times per month
❌ Warning Signs
- You use BNPL because you don't have the money right now
- You have multiple BNPL purchases open at once
- You're losing track of amounts due
- You use BNPL for everyday things
- You use BNPL to pay off another BNPL
Self-Test: Are You at Risk?
Answer honestly:
| Question | Answer |
|---|---|
| Do you have more than 2 open BNPL purchases right now? | Yes/No |
| Did you miss a payment last month? | Yes/No |
| Do you use BNPL for food, clothing, small items? | Yes/No |
| Do you not know exactly how much you owe in total? | Yes/No |
| Do you use BNPL because there's no money left at month's end? | Yes/No |
Evaluation:
- 0 Yes: You're in control
- 1-2 Yes: Caution — time to reconsider
- 3+ Yes: You're at risk — act now
Getting Out of the BNPL Trap
Step 1: Get an Overview
Write down all open BNPL obligations. Typical BNPL providers:
- Specialized BNPL services (Klarna, Afterpay)
- Payment services with installment options (PayPal)
- Shop-specific BNPL solutions
Step 2: Prioritize
| Priority | What First |
|---|---|
| 1. | Payments close to collections |
| 2. | Payments with interest |
| 3. | Next payments by deadline |
Step 3: Secure Funding
Options:
- Radically cut expenses for 1-2 months
- Sell unnecessary items
- If needed: installment loan at lower rate (but be careful!)
- If over-indebted: debt counseling (free!)
Step 4: Disable BNPL Options
With most BNPL providers you can:
- Delete account or disable "pay later" options
- Turn off installment features in settings
- Remove BNPL as preferred payment method in shops
Alternatives to BNPL
| Instead of BNPL | Do This |
|---|---|
| For impulse purchases | 24-hour rule: Still want it tomorrow? |
| For larger purchases | Save (Sinking Fund) |
| For liquidity problems | Build emergency fund |
| For return safety | Credit card with actual billing |
Getting Help
For serious debt problems:
- Schuldnerberatung (debt counseling) — Free at Caritas, Diakonie, Verbraucherzentrale [7]
- Crisis hotline — 0800 111 0 111 (free, 24/7)
- Online self-help — meine-schulden.de [8]
What to Do Now
- Get an overview — How much BNPL do you have open?
- Be honest — Is usage under control?
- Delete/disable apps — If you use them too often
- Build emergency fund — Long-term solution
Sources
- Bundesarbeitsgemeinschaft Schuldnerberatung e.V. (2024). "Jahresbericht 2024: BNPL als neue Schuldenfalle". https://www.bag-sb.de/veroeffentlichungen/
- Verbraucherzentrale Bundesverband (2024). "Buy Now, Pay Later: Risiken für junge Verbraucher". https://www.vzbv.de/publikationen/buy-now-pay-later
- SCHUFA Holding AG (2024). "SCHUFA Kredit-Kompass 2024". https://www.schufa.de/kredit-kompass
- Bundesgerichtshof (BGH). Inkassokosten-Rechtsprechung. https://www.bundesgerichtshof.de
- SCHUFA Holding AG (2025). "BNPL-Einträge ab März 2026: Neue Scoring-Faktoren". https://www.schufa.de/presse
- Bundesdatenschutzgesetz (BDSG) § 35 Abs. 2. Speicherfristen für Negativmerkmale. https://www.gesetze-im-internet.de/bdsg_2018/
- Bundesarbeitsgemeinschaft Schuldnerberatung e.V. "Schuldnerberatungsstellen finden". https://www.meine-schulden.de/beratungsstellen-finden/
- Projekt "Meine Schulden" der Diakonie Deutschland. https://www.meine-schulden.de