British shoppers are entering the New Year with significant financial risks after spending a staggering £3.4 billion on buy now, pay later (BNPL) services during the Christmas season. This unregulated form of credit has seen a record number of consumers turning to it for holiday purchases, raising concerns about potential debt spirals. Despite promises from the Labour party to reform the sector, new protective regulations are not expected until at least 2026, leaving consumers vulnerable to accumulating debt. BNPL allows shoppers to defer payments or pay in installments, but critics argue that it lacks sufficient transparency and robust affordability checks. With 4 million UK adults relying on credit over the festive period, and 38% of them using BNPL, the trend is particularly concerning for women, who are more likely to depend on this credit option. As retail sales decline, experts warn that the popularity of BNPL could lead to severe financial repercussions in the New Year.
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