5 budgeting tips to avoid BNPL debt this 'Janu-worry'

For many South Africans, January is associated with a period of intense financial pressure. After festive season spending, many find themselves strapped for cash and counting down the days until the next payday, which is often weeks away. This, combined with expenses associated with the new year, including transport costs, school fees, insurance, and medical aid increases, makes it easy to understand the temptation to make use of cost deferment payment methods, such as Buy Now, Pay Later (BNPL). 

BNPL schemes, which allow customers to pay with interest-free instalments rather than the entire amount upfront, have gained popularity over recent years. This is thanks, in part, to its seamless integration into e-commerce platforms. According to payment gateway, Stitch, the South African BNPL market is projected to grow by 13.6% annually and set to exceed R16.7 billion within five years. Their data also shows that 45% of respondents have already used BNPL for everyday purchases, indicating an increasing reliance on these payment methods. 

The financial strain and delayed payments can lead consumers into commitments they’re not ready for. BNPL doesn’t remove the cost; it only delays it. Many consumers underestimate how quickly those instalments pile up, especially when the excitement of the purchase has worn off.

The availability of BNPL wallets, where a customer is also given a principal amount to spend, potentially over and above the expense that they were first looking to cover, can introduce the temptation of impulse purchasing, inflating a customer’s monthly repayments further in the absence of careful spending and disciplined management.

Here are tips to get you through the long month of January and set up for success in 2026. 

BNPL products are largely unregulated, meaning fewer legal protections

 We see people taking on multiple BNPL deals without realising how over-extended they’ve become. Because affordability and credit checks are minimal, the responsibility to track affordability falls squarely on the consumer - and many only realise the impact when it’s too late.

Unlike registered credit providers, many BNPL platforms fall outside existing regulation. That means:

• There are minimal or no affordability checks during the application
• BNPL services have limited visibility into an applicant’s existing debt due to no credit report assessments
• There is often unclear recourse for disputes or errors

Significantly, a missed payment or an agreement not being honoured will result in the person being handed over to a collection agency, leading to even greater costs due to the agencies charging fees and general handover collection penalties. 

When a product isn’t regulated, the burden of risk shifts heavily onto the consumer. If a debit order is delayed, disputed or incorrect, your recourse is limited compared to formal credit channels.

This lack of oversight can leave consumers vulnerable.

Beware of impulse buying - Pay Later still means pay later

 BNPL can make items feel “discounted” in the moment, as typically only a first instalment is due on purchase. However, in a few weeks, remaining instalments fall due, alongside school fees, transport, food, and rising expenses.

The danger is that BNPL products make unaffordable items feel within reach, even when they’re not. If you’re relying on a future paycheque to cover it, that’s a warning sign, especially in months filled with other financial commitments.

Many shoppers only realise the impact of their spending once the novelty has worn off, but the instalments remain.

Save up for 'Januworry' rather than borrowing or using BNPL

 The safest way to prepare for 'Januworry' is to prepare well in advance.

South Africans underestimate the power of small, consistent savings. Even setting aside R20 or R30 a week gives you more choice and less reliance on last-minute borrowing.

If you save for planned purchases, like shoes for a child, an appliance you genuinely need, or a long-delayed repair, you can shop confidently without relying on future income.

Build (and stick to) a monthly and annual budget

A clear, realistic budget helps you avoid over-committing during sale periods.

A budget isn’t just a spending plan; it’s a protective tool and the new year is the perfect time to set one. When you map out your income and expenses for the entire year, you can immediately see what you can and can’t afford, regardless of the size of the discount,” Manyanya explains.

She also emphasises the importance of limiting non-essential purchases. When you head to the grocery store, make sure you make a shopping list and stick to it.

Don’t borrow more than you can afford

With all forms of credit, make sure that you only borrow what you really need. Regulated credit providers will conduct an affordability assessment during a credit application to ensure customers don’t borrow more than they can likely afford to repay.

For consumers looking to manage their own affordability when considering credit or a BNPL service, Manyanya suggests that “consumers should calculate their debt-to-income ratio by comparing the amount they owe to the amount they earn,” explains Manyanya.

The bottom line

The financial stress of January is felt across the country, but can be eased with some careful planning and budgeting. By taking a proactive, informed approach now, you can build resilience through the difficult times and the months ahead.

* Manyanya is the spokesperson for Wonga.

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