Business
‘I use buy now pay later scheme for everything – I’m £3k in debt’
Stephanie MiskinBBC Yorkshire and Lincolnshire Investigations
BBCFor single mum-of-four Abi, the debts she has built up by using buy now, pay later (BNPL) services have left her trapped in a “vicious circle”.
Abi, from Sheffield, is one of a number of people who spoke to the BBC about the money they owe after using BNPL to purchase basic goods, including groceries and school uniforms.
Five leading debt support organisations say they are seeing a rise in the number of families needing help with the type of debt racked up through apps such as Klarna, Zilch and Clearpay.
About 1.6m people in the UK used these methods to spread the cost of their household bills this summer, according to research by debt charity Stepchange.
Buy now, pay later services say their products have safeguards to help customers manage their spending and they offer support for those who get into financial difficulty.
‘I’m trapped in a vicious circle’
BNPL allows shoppers to spread the cost of purchases over weeks or months, using interest-free credit. But debts can mount if people miss payments.
From next year all BNPL apps will be regulated, leading to stricter affordability checks.
But in the meantime, debt advisors say people are using them “unsustainably” to “plug the gap” in their budgets.
Soft credit checks mean BNPL providers are often not told if people are borrowing from elsewhere – so they sanction loans without knowing a customer’s wider situation.
Abi started using BNPL when she hit tough financial times.
“There’s a temptation to go ‘oh I’ll just use that today and when I get paid, I’ll pay it off’ – and extend it over a few months,” says Abi, who is training to become a barber.
“Then you have to go back and live on it and then do it again.”
The 37-year-old, who cannot use credit cards because of other existing debts, began using BNPL three years ago to make larger purchases.
She now uses multiple BNPL apps to buy everyday items including pet food, bus passes and groceries – choosing which supermarkets to go to based on which she can get BNPL vouchers for.
Abi regularly buys a weekly travel pass, costing £40, using a BNPL card at the checkout.
She pays an initial fee of about £5 which allows her to spread the cost over several payments. Another fee is then applied if repayments are delayed.
Abi has faced additional fees and interest after deferring multiple repayments and now owes BNPL firms about £3,000.
Five leading debt advice groups say referrals related to BNPL debts are increasing.
Debt counselling service Money Wellness says it helped 44% more people with buy now pay later debts in the year ending in September 2025 than it did in the previous 12 months, which it describes as a “huge spike”.
The National Debtline and Business Adviceline, which are run by the Money Advice Trust, supported 11,000 people in the same period with debts of this kind.
Citizens Advice says it has seen a 48% year-on-year increase, and Christians Against Poverty says 14% of its clients had BNPL debts in 2024, up from 9% in 2023.
Tom Gibbons, from Money Wellness, says the rising cost of living has “pushed people’s budgets to the limit”.
Food prices have increased by 37% in five years, meaning a food shop costing £10 five years ago would now cost £13.70.
Mr Gibbons says Money Wellness is seeing more young single women with children seeking help with BNPL debts as they try to “plug the gap and can’t make ends meet”.
Abi has begun applying for a debt relief order, which would freeze her debts for 12 months. If her financial situation does not change, those debts may be written off, but her credit file will be affected for six years.
In August, a record monthly high of more than 4,200 debt relief orders were approved.
Jennifer, not her real name, owed £5,000 through BNPL before she was approved for a debt relief order in July.
The 26-year-old single parent from West Yorkshire says it has given her a “fresh start” and she no longer lives in fear of phone calls from debt collectors.
“I can finally breathe again,” she says.
She is one of many who told the BBC that accessing BNPL “was too easy”, adding: “You fall into a pattern, and before you know it, it’s a huge problem.”
But not everyone who uses BNPL has spiralling debts.
Danielle, a single mum of five and home care assistant from Rotherham, says she is “responsible with it” and only uses what she can afford to pay back.
Where she would once turn to a food bank or borrow money from family in the run up to payday, she now uses BNPL apps to buy essentials such as shoes and school uniforms for her children.
“I do know people who use it and worry about how they will pay it back, but I don’t want to end up paying money out to BNPL and then having nothing to live off,” says Danielle.
“In the past I’d be worrying and I’d be one of the last parents buying the bare minimum of what I could afford. Now as soon as they finish school I go out and buy all the uniform.”
Many people who spoke to the BBC never imagined they would find themselves in debt.
Mr Gibbons says: “All it takes is an accident and you’re off work, or made redundant and then all of a sudden you’ve got no money coming in and you’re still going to have find the money to pay BNPL.”
In response to the BBC investigation, a spokesperson for Klarna says the firm would welcome new regulation by the Financial Conduct Authority (FCA) next year and its “products are designed to help consumers avoid getting trapped in debt”.
If payments are missed, access to further credit is then restricted, they say.
Zilch, which is a regulated FCA lender, says it has “affordability safeguards in place” to ensure its customers “are using our product responsibly”.
- Details of organisations offering help and support with debt are available via the BBC Action Line.
Business
‘India solidly through global shocks’: EAM Jaishankar calls for ‘hedge, de-risk, diversify’ strategy amid Iran war – The Times of India
External affairs minister S Jaishankar on Saturday said that India has “solidly come through” a the ongoing turbulent geopolitical situation amid the Middle East conflict and the Russia-Ukraine war, adding that the country has been “managing domestic and external challenges successfully.”Speaking at the 15th Annual Convocation Ceremony of IIM Raipur, he said countries today must focus on “hedging, de-risking and diversifying” as the global order changes rapidly.
He said the world is going through a “structural” shift, adding, “The global order is changing before our very eyes with visible shifts in the relative power and influence of countries. The politics of some societies find it difficult to come to terms with these changes.”Jaishankar also said, “New developments in technology, in energy, military capabilities, in connectivity and in resources have encouraged risk-taking in an increasingly competitive environment. Everything today is being leveraged, if not actually weaponised. The world is then confronted with the prospect of securing itself in an increasingly volatile and unpredictable environment. This has necessitated the need to hedge, de-risk and diversify.”He said India has reasons for optimism compared to many other countries. “There is an optimism in our society that is lacking in many other parts of the world,” he said, adding that India is now among the top five economies and has handled recent global shocks well.He further stated, “No one can dispute that the multiple global shocks that have recently tested our resilience, and that India has come through that solidly. We have managed both domestic and external challenges fairly successfully.”The minister said building national capabilities is key for India’s goal of Viksit Bharat 2047. He also praised “inclusive growth, representative politics, and decisive leadership.”He said, “Building national capabilities has become more critical in the light of the global trends that I have mentioned… We must endeavour to build and secure within our control as many capacities as we can.”On foreign policy, Jaishankar said India is focusing on expanding market access, securing resources and technology, and supporting Indians abroad, while promoting “Brand India.”“Our foreign policy is today focused on expanding market access for Indian producers. It is also focused on helping to secure resources, technologies and essential goods. It looks after Indians… And it promotes Brand India,” he said.These remarks come at a time when the Middle East tensions that began on February 28 with US-Israel strikes on Iran have stretched beyond the 1 month mark. The crisis has since intensified with Iran’s chokehold over the strategically crucial Strait of Hormuz, sending ripples to oil baskets across the globe.
Business
Govt assures IMF of timely power tariff hikes, agrees to subsidy cap under $7bn EFF – SUCH TV
Pakistan has assured the International Monetary Fund (IMF) of implementing timely electricity tariff adjustments and capping power subsidies at Rs830 billion in the upcoming budget to sustain energy sector viability amid global market shocks.
The new baseline tariff will be implemented from January 15, 2027, under the structural benchmark agreed with the IMF under the $7 billion Extended Fund Facility (EFF).
The privatisation of power distribution companies — including Iesco, Gepco and Fesco — has been delayed once again and is expected to be finalised by early 2027.
The government is working closely with the Privatisation Commission to assess the viability of privatising two targeted Gencos (Nandipur and Guddu).
The government is committed to the IMF to apply the recently adopted net billing regulation to new consumers to better balance solar and grid demand, in line with international practice. These steps will help prevent the recurrence of the monster of the circular debt.
“It has been anticipated that with allocated subsidy and the timely tariff adjustments, it will minimise Circular Debt (CD) flow target of Rs300 billion and remain committed to reducing gross CD flow to zero by FY31,” top official sources confirmed to The News here on Friday.
Pakistan, according to the official, assured the IMF of achieving energy sector viability to maintain macroeconomic stability.
For this purpose, the government shared with the IMF in writing for timely tariff increases that recover costs and the re-emergence of circular debt.
The execution of timely adjustments in tariffs is necessary in the context of recent shocks to global energy markets to ensure the sector’s viability and broader macroeconomic stability.
The government has established the Integrated Energy Plan (IEP) targeted for completion by April 2027 in a bid to make better-informed decisions on supply and demand across the energy sector value chain.
According to the government’s strategy, it is aimed at incorporating the CD Management Plan to be adopted by the cabinet by the end of July 2026.
This upcoming CDMP will ensure timely electricity tariff adjustments consistent with cost recovery that remain progressive, and increases are introduced, balanced across consumer categories.
This includes Nepra’s continued timely notifications of quarterly tariff adjustments (QTAs) and automatic monthly fuel charge adjustments (FCAs), as well as the full implementation of the January 2027 annual rebasing by January 15, 2027.
Following the implementation of the CD stock reduction operation in FY26 and recognising ongoing improvements in operational efficiency and performance, the FY27 budget will include a subsidy limited to Rs830 billion.
The subsidy will cover (i) the projected tariff differential for Discos and KE; (ii) current and arrears payments of Fata; (iii) agricultural tubewells; and (iv) CD stock payments to counterbalance anticipated CD flow, which continues to be targeted at a lower level following the CD stock operation.
The settlement with several IPPs, with whom penalty payments on arrears were to be waived as part of the broader CD stock reduction operation, remains incomplete, with CD continuing to accumulate as a result. The government will finalise arrangements with all IPPs by the end of June 2026.
The government will try to resolve a dispute with KE, currently under litigation, which has resulted in significant nonpayment and arrears by the end of December 2026.
The government will continue to move forward with its fundamental cost-reducing power sector reforms, including private sector participation in Disco management to improve performance, efficiency, and governance, and address power sector CD drivers, helping to mitigate the need for higher tariffs.
The government is moving forward with the private sector participation process for second batch of Discos, i.e. Hesco and Sepco, for which conditions precedent – in line with World Bank recommendations and including outstanding subsidy claims; outstanding balances with the government, other Discos, and other entities; and other balance sheet issues – will be completed by the end of December 2026 as structural benchmark under the IMF programme.
For improving the transmission system, the appointment of a CEO to the Independent System and Market Operator is underway, as are efforts to finalise staffing arrangements.
The incorporation and legal formation of the Energy Infrastructure and Development Management Company (EIDMC) have been completed, and its leadership selection process has also been initiated.
The National Grid Company (NGC) is operational and is undergoing a review of its processes in the context of its new role.
If privatisation does not prove feasible, work to bring relevant companies under one entity to reduce redundancies will be done, make necessary improvements, and enhance operations.
The Nepra issued wheeling auction framework guidelines in January 2026; this will enable auctions under the auspices of the Competitive Trading and Bilateral Contract Market (CTBCM).
The first wheeling auction, for 200MW, will take place by the end of June 2026.
At current prices, the looted gold is worth around $70 million. PHOTO: PIXABAY
Prices of gold and silver remained stable in domestic and international markets on Saturday.
In the local market, the price of gold per tola held steady at Rs490,362, while 10 grams of gold remained at Rs420,406.
On the global market, gold prices per ounce were stable at $4,676.
Silver prices also remained firm, with one tola trading at Rs7,794 and 10 grams at Rs6,682. Globally, the price of silver per ounce held steady at $73.10.
Read: SBP injects Rs13.68tr into market
Yesterday, gold prices in Pakistan rose, tracking an upward trend in the international market. In the domestic market, the price of gold per tola climbed by Rs3,400 to settle at Rs490,362.
Likewise, the price of 10 grams of gold increased by Rs2,915, reaching Rs420,406, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
A day earlier, on Thursday, gold prices had declined, with the per tola rate falling by Rs7,100 to Rs486,962.
In the global market, gold prices gained $34, reaching $4,676 per ounce, including a $20 premium.
Moreover, silver prices also moved higher, rising by Rs160 to Rs7,794 per tola.
Meanwhile, on Friday, the Pakistani rupee posted a slight gain against the US dollar in the interbank market.
By the close of trading, the local currency stood at 279.10, appreciating by Rs0.01 against the greenback. On Thursday, it had settled at 279.11.
In global markets, China’s yuan strengthened against the US dollar as the latter steadied, with investor attention shifting to the release of US payroll data later in the day.
The dollar had surged a day earlier on safe-haven demand after US President Donald Trump signalled that the Iran conflict could persist.
The spot yuan opened at 6.8930 per dollar on Friday and was last trading 37 pips higher than its previous close.
Tigers place Justin Verlander on 15-day IL with hip injury
How UConn-Illinois, Arizona-Michigan will be decided in men’s Final Four
Prince Harry gives up UK dream: What happened?
-
Entertainment1 week agoLee Sang-bo dies at 45: Funeral details revealed
-
Sports1 week agoIllinois defense gets tough, ousts Houston to reach Elite Eight
-
Business1 week agoHow do you spot a fake online review?
-
Sports7 days agoUSMNT handed reality check by Doku, Belgium ahead of World Cup
-
Sports7 days ago2026 NCAA men’s hockey tournament: Schedule, results
-
Fashion1 week agoChina rolls out tariff cuts on Congo imports from April 1
-
Fashion1 week agoEU apparel imports slump 15.48% YoY in Jan; Bangladesh hardest hit
-
Sports7 days agoMan City show why they are worthy WSL title winners as tired United wilt