Buy now, eat later? One in ten using BNPL for food and fuel, survey reveals

Bristol, UK: 2 July 2025: A new survey by the UK's leading credit-building business, Loqbox reveals that more than one in ten UK adults are now turning to Buy Now, Pay Later (BNPL) payment methods just to cover basic necessities like food and fuel, underscoring growing financial pressures — and highlights a major knowledge gap in how credit works, with one in three respondents admitting they don’t understand borrowing terms.

In the dynamic and fast-moving landscape of UK consumer finance, people now have more options to borrow on credit than ever before, with many forms of digital credit products at their fingertips. Loqbox’s survey shows that many people are at risk of falling into problematic debt due to not understanding the credit agreements they’re signing up for, or common terms like ‘annual percentage rate (APR)’, ‘variable rate’, or ‘default’.

The survey, which forms part of the new Loqbox report “Borrowing money in the UK: What people get wrong and how to get it right", was conducted in conjunction with polling firm Censuswide, offering one of the most in-depth examinations of why people borrow on credit, how they access them, and their attitudes towards managing personal finances across the UK. 

Key findings include:

• 31% of people had borrowed money in the last year, with 49% using credit cards, 35% using personal loans, and 18% using Buy Now, Pay Later (BNPL).

• BNPL is most popular with people aged between 45-54, followed by those aged 18-24.

• Women were more likely to borrow on credit cards (54%) vs 50% for men, and men were more likely to borrow on BNPL (19%) vs 16% for women.

• Just 14% always read the small print when they borrow money.

The largest group borrowing less than £100 were in the North West, with Liverpool ranking as the location of the largest group of borrowers in this category.

The Loqbox/Censuswide survey gathered 1,000 responses from across the UK  — including Scotland, Wales and Northern Ireland — from young adults aged 18 to those 55 and over and across all income brackets, giving a comprehensive overview of the UK population’s appetite for credit, as well as their awareness, perceptions, decision-making, and understanding of borrowing.

For most people in the UK, using credit is a fact of life. Through credit cards, personal loans, mortgages, car finance, BNPL and other forms, most people in the UK will use at least one or several of these borrowing options.

Loqbox’s report states that for many people, credit is a tool that makes life’s larger purchases more manageable. But for others, struggling with a lack of disposable income, tight budgets, and no financial safety net, they are forced to borrow for essentials like food or fuel and are at more risk of falling into unmanageable debt. Compounding this issue is the complexity of credit agreements, which often contain baffling jargon, unclear fees and complex terms and conditions, making it difficult for people to understand their rights.      

Sadly, for some of those excluded from mainstream credit, they’ve been left with no option but to go to high street loan sharks for the money they need and are at the whim of shockingly high interest rates and fees, with no legal protections. 

Tom Eyre, co-founder and CEO of Loqbox, says: “How we view money, and what we know about how to borrow it, can literally alter the direction of our lives. When used responsibly, credit is an incredibly powerful tool that helps people reach important milestones, whether it’s renting somewhere new, buying your first home, that dream holiday, wedding or other momentous occasion. Credit can help achieve life’s special occasions. However, it’s so important that people have the facts and the tools to help them manage this credit responsibly.

“That’s why Loqbox has produced this survey as part of our report. The key message shining through is this: when borrowing money, by empowering yourself with the knowledge to make informed lending decisions, you can access better borrowing deals, save to meet your financial ambitions and build a richer life. By improving their knowledge of credit products, people can improve their financial wellbeing and enjoy a happier, healthier relationship with money.”    

To find out more, take a look at the full report here.