If you’re using Buy Now Pay Later (BNPL) to manage your spending, there’s something you need to know. The rules have changed.
As of June 2025, BNPL services like Afterpay, Zip and Humm are no longer treated as casual payment options. They’re now regulated just like credit cards, which means providers must check if you can afford repayments, hold a credit licence, and report missed payments, and in some cases, on-time payments, to credit agencies.
At Revive, we’ve seen how quickly BNPL debts can build up. So far in 2025, 40% of people who’ve come to us for help were carrying BNPL debt, with an average balance of $3,051.
So, if you’re still treating BNPL like “interest-free money”, it’s time to think again.
With mandatory credit checks and late payments now showing up on your credit report, BNPL is real credit. And like any credit product, it comes with real consequences.
Table of Contents
How to Use BNPL Services Responsibly
If You Are Struggling with BNPL Repayments
What is Buy Now Pay Later
Buy Now Pay Later (BNPL) is a type of short-term credit that lets you buy something now and pay it off over time. Most providers split the cost into equal instalments, with payments taken automatically from your bank account or debit card every fortnight or month.
It’s been marketed as an easy, interest-free way to shop, and for a while, it was. Services like Afterpay, Zip and Humm made it simple to buy things without the usual checks you’d face when applying for a credit card or loan.
But BNPL has evolved. What was once a casual payment method now works more like formal credit. Providers need to assess your ability to repay, and missed payments can impact your credit report.
BNPL can still be useful when used responsibly, but it’s important to treat it with the same caution as any other loan or credit product. Especially if you're using more than one provider or juggling other debts.
The Dangers
On the surface, Buy Now Pay Later seems simple. No interest, no hassle, and you get what you want straight away. But what many people don’t realise is how easily it can snowball into something much more serious.
Here are some of the risks you need to be aware of before tapping ‘Pay Later’ again.
Your Credit Rating Will be Affected
From June 2025, every time you apply for a BNPL plan, it gets recorded as an enquiry on your credit file — just like applying for a credit card or loan. And it doesn’t stop there.
Missed payments are now reported to credit agencies and can negatively impact your credit score. Some providers may also report on-time repayments, but this depends on whether they’ve opted into comprehensive credit reporting. That means missed payments or defaults could lower your score and make it harder to borrow money in the future, whether it’s for a car, a home, or even a phone plan.
The takeaway? Only use BNPL when you’re confident you can pay it off on time, and keep an eye on your credit report so you know where you stand.
The Fees Can Add Up
BNPL might be advertised as interest-free, but that doesn’t mean it’s free.
Late fees are common, and some providers charge ongoing account-keeping or monthly fees too. If you’ve got more than one plan running at once, those little extras can really add up. What started as a $200 purchase can quietly turn into $240 or more once fees kick in.
Adds to The Debt Pile
One of the biggest traps with BNPL is how easy it is to say yes to things you can’t actually afford. The payments seem small and manageable, but when you have multiple accounts running at once, the total can sneak up on you.
This is especially risky if you’re already juggling rent, bills, credit cards or other loan repayments. BNPL might feel like a short-term solution, but it can quickly become just another thing dragging down your budget.
Difficulty Tracking Your Spending
Because payments are spread out and deducted automatically, a lot of people lose track of how much they owe until they check their account and wonder where their money went.
Here’s a quick example of how fast it can build up:
| Purchase Date | Purchases | Fortnight 1 | Fortnight 2 | Fortnight 3 | Fortnight 4 | Fortnight 5 |
|---|---|---|---|---|---|---|
| Fortnight 1 | Shoes - $180 | $45 | $45 | $45 | $45 | |
| Fortnight 2 | New Phone - $1,200 | $400 | $400 | $400 | $400 | |
| Fortnight 3 | Kitchen Appliances - $320 | $80 | $80 | $80 | ||
| Fortnight 4 | Clothing - $220 | $55 | $55 | |||
| Repayment Amount | $45 | $445 | $525 | $580 | $535 |
By the fourth fortnight, you’re paying out over $500 every two weeks — and that’s not counting any other bills or subscriptions you might have. If you’re not budgeting carefully, it can catch you off guard.
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The Benefits
While BNPL now comes with more rules and responsibilities, it can still be a helpful tool when used the right way. Like any credit product, it’s not the enemy. The key is knowing when it makes sense and how to stay in control.
Here are a few situations where BNPL might work in your favour:
Quick Access to Cash
Sometimes you need to replace something essential, like a fridge or washing machine, but don’t have the full amount upfront. BNPL can help you get what you need straight away, while spreading the cost across smaller repayments that fit into your pay cycle.
Flexible Payment Plans
Most providers let you spread a purchase over several instalments, fortnightly or monthly, so you know exactly what’s coming out of your account and can slot it into your budget.
Credit Building Potential
If your provider reports positive data, on-time BNPL repayments can help strengthen your credit file. Used correctly, it’s another way to show reliable repayment behaviour.
How to Use BNPL Services Responsibly
BNPL can still be a useful tool if you manage it well. But now that it’s considered formal credit, you’ll want to treat it with a bit more caution. Here are some quick tips to help you stay in control:
- Treat it Like Any Loan: BNPL isn’t just a payment plan. You’re entering a credit agreement, so make sure you only commit to what you can afford to repay in full and on time.
- Set a Budget: Before you click “Buy Now”, take a look at your budget. Can you cover the upcoming repayments without falling short on essentials? Add the BNPL instalments to your list of monthly expenses to get a clearer picture.
- Stick to One Plan: It’s easy to end up with multiple BNPL plans running at once. Try to stick to one at a time, and finish it before starting another. The fewer repayment schedules you’re juggling, the less chance there is of missing one.
- Pay On Time: Late fees can pile up fast, and missed payments now affect your credit score. Set reminders or automate your repayments so you don’t get caught out.
- Avoid Impulse Buys: BNPL makes it super easy to buy on impulse. But before you commit, take a moment to ask yourself if it’s something you actually need, or just want in the moment.
- Review Your Credit Report: If you’re using BNPL regularly, it’s a good idea to check your credit report at least once a year. That way, you can spot any errors or unexpected entries early.
Paying Off BNPL Debts
If you’re feeling weighed down by BNPL repayments, you’re not alone. The good news is, with a clear plan, you can get on top of it.
Start by listing every BNPL account you’ve opened. Take note of how much you owe, what the upcoming payments are, and whether you’ve been charged any late fees or account-keeping costs. Focus on the ones costing you the most first. Even just clearing one account can free up your cash flow and reduce stress.
Next, map out your instalments. When is each one due, and how much do you need to pay? Add these into your weekly or monthly budget so they’re not catching you off guard. Seeing it all in one place can make things feel more manageable.
Got a tax return, bonus or some extra cash coming in? Consider putting a chunk of it toward your BNPL debt. It might not wipe it out completely, but even a small lump sum can make a noticeable difference.
And one more tip: hold off on opening new BNPL accounts while you’re still paying off the old ones. It’s the easiest way to stop the cycle from getting worse.
If You Are Struggling with BNPL Repayments
If BNPL repayments have become overwhelming, there are steps you can take to regain control and alleviate immediate financial stress. Explore our Debt Management Solutions, which can incorporate your BNPL debt and reduce it. Our team of Customer Success Specialists are available to provide support and advice tailored to your specific situation—get in touch with us today on 1800 534 534. At Revive Financial we offer professional assistance through various solutions designed to help you take back control of your finances and work toward becoming debt-free.