Black Friday BNPL traps: how missing payments can damage your finances

The air fryer you’ve been eyeing for months is finally on sale for R2 000. You only have R1 000 available today, but there it is: a Buy Now, Pay Later (BNPL) option. You get the air fryer immediately, and your payments only start later. No interest. No waiting. It feels like a smart workaround. But there’s a catch in the fine print. 

If you miss a payment – even once – penalty fees and default charges can add up quickly. And when an account goes into default, it can even negatively impact your credit record in some cases.

BNPL is designed to feel light, simple, and low-risk, and that’s what makes it tempting. But if it seems too good to be true, pause. Someone is carrying the cost, and the consumer is usually the one who pays it later.

Always read the fine print:

Before you enter a BNPL agreement, double-check you’ve read the fine print, so you fully understand how long the interest-free period lasts (don’t assume six months) and what happens if a payment is missed. Typically, if you default, there’ll be fees, interest, and penalties to pay. Additionally, some BNPL providers are members of the South African Credit and Risk Reporting Association (SACRRA), so a missed payment could be reported to and recorded by credit bureaus.

Additionally, certain BNPL providers allow clients to change their payment terms into a credit agreement, which is then reflected on their credit report.  The bottom line? In some cases, a missed BNPL payment can negatively impact your credit score.

If you’re worried you may already have missed a BNPL payment, check your credit record early. You can use the Sanlam Credit Solutions platform to access your free credit report and see if your score has been affected. If a BNPL default is showing, focus on paying the outstanding amount as soon as possible, and then be very consistent with keeping other debt payments up to date to rebuild your score over time.

Pause and avoid the Black Friday flurry

Black Friday is designed to create urgency. If BNPL is the only way you can afford the item, that’s your signal to step back and reassess.

How to shop safely this Black Friday

1. Plan the purchase before the sale. Know the item’s usual price and your walk-away limit. Don’t wait for Black Friday – sales prices are often consistent throughout the month.
2. Read the terms in full. If the language is difficult, copy the terms into an AI or translation tool and ask it to summarise when penalties apply and how quickly they can do so. Don’t assume a six-month zero-interest grace period; often, interest may kick in after two weeks. Always read the fine print.
3. Check if the provider is a registered credit provider. This determines what recourse you have if something goes wrong.
4. Stress-test repayment. If instalments run every two weeks, where will the money actually come from? If you can’t afford it now, how will you afford it later?

Most people don’t enter a BNPL agreement intending to default; something simply changes. A salary is delayed, a medical expense comes up, or a different bill suddenly becomes urgent. However, once a BNPL payment is missed, the agreement can shift very quickly. This is where penalties and fees are applied. Each provider operates differently, and the total cost can escalate faster than you expect.

The bottom line

BNPL can work if you already know where the money is coming from,” Darko concludes. “But if you are hoping something will change in the next pay cycle, that’s where the danger lies. If you’re feeling unsure and want to speak to someone, reach out to a professional like your adviser or one of the free coaches on our platform.

* Darko is the business head at Sanlam Credit Solutions.

PERSONAL FINANCE