Black Friday Deals Can Put People in Debt – How to Keep Your Finances Safe

Why Holiday Shopping Is a Financial Minefield

The rise of one‑click purchasing and “buy now, pay later” (BNPL) financing has turned holiday shopping into a frictionless experience. While the convenience is undeniable, it also makes it far easier to spend beyond our means, especially during the frenzy of Black Friday.

The Debt Trap Behind the Discounts

According to recent consumer‑spending reports, the average shopper spends up to 30 % more on Black Friday than on a typical week. When purchases are split into interest‑free installments, the true cost often goes unnoticed until the bills start piling up months later.

Key Risks of “Buy Now, Pay Later”

• Hidden fees: Late‑payment penalties and processing fees can quickly erode any savings.
• Credit score impact: Missed installments are reported to credit bureaus, potentially lowering your score.
• Psychological spending boost: The illusion of “no interest” encourages impulse buys that you wouldn’t make with cash.

Practical Strategies to Manage Holiday Spending

1. Set a strict budget before you log in. Write down the maximum amount you can afford to lose without affecting essential expenses.

2. Prioritise cash or debit payments. When the money leaves your account instantly, you’re less likely to overspend.

3. Use the 24‑hour rule. Add any non‑essential item to your cart, wait a full day, and then decide if you still need it.

4. Track every purchase. A simple spreadsheet or budgeting app can highlight where you’re slipping.

5. Limit BNPL usage. Reserve it for truly essential big‑ticket items, and always read the fine print.

Alternative Ways to Save Without Going Into Debt

Consider these options instead of relying on credit:

• Early planning: Start a holiday fund at the beginning of the year.
• Price‑matching: Use retailer price‑match guarantees to get the best deal without extra fees.
• Coupon stacking: Combine store coupons, cashback apps, and loyalty points for maximum savings.

Final Thoughts

Black Friday can be a great opportunity to snag bargains, but the convenience of instant checkout and BNPL financing can turn a smart purchase into a financial burden. By setting clear limits, tracking your spending, and treating “buy now, pay later” as an exception—not a rule—you can enjoy the holiday season without the lingering debt.