“Buy Now, Pay Later”: When the Trap Snaps Shut.

“Buy Now, Pay Later”: The Invisible Debt Trapping More and More Quebecers

Debt Solutions · July 2026 · 6-minute read

By Julia from the BRESSE Syndics team · Licensed Insolvency Trustees · Quebec and Montreal

Four $32 payments, “interest-free.” At the register—whether online or in-store—the offer seems harmless—almost like a service. You click, walk out with the item, and don’t give it another thought. The problem is that this small action keeps repeating itself: a pair of earbuds here, a coat there, groceries sometimes. Three months later, it’s no longer four payments, but twelve or fifteen, spread across three or four different retailers—and no one adds them all up. That’s what invisible debt is all about.

A Payment Method That’s Booming in Canada

“Buy Now, Pay Later” (BNPL) financing has become one of the fastest-growing forms of consumer credit in the country. Offered by fintech companies such as Klarna, Affirm, Sezzle, and Afterpay, it allows consumers to split almost any purchase into small, equal installments, with the first installment typically due immediately.

What was once intended for major purchases is now used for everyday needs: according to recent research conducted in Canada, a large proportion of users rely on it for groceries and essential purchases. Even more concerning: nearly half of users are juggling multiple payment plans at the same time. This is known as debt accumulation—multiple payment schedules with different creditors, all due on different dates.

Why It’s So Easy to Underestimate This Debt

Unlike a credit card, deferred payment does not generate a single monthly statement showing a total balance. Each plan exists within its own app. Interest is listed as “zero,” approval is instant and informal, and nothing about it feels like a loan. Yet it is one: you’re committing your future income to pay for a current expense.

The trap closes in three ways. First, the lack of an overall view: without a consolidated statement, you lose track of the total amount actually owed. Second, late fees: the “interest-free” period quickly disappears as soon as a payment is missed, and penalties are added. Finally, the snowball effect: when several automatic debits are due in the same week, the account runs out of funds, which triggers bank fees and forces you to… pay with a credit card. The invisible debt then becomes very visible debt, at 20% interest—sometimes even more.

⚠ The warning sign to watch for
If you’re using deferred payment for essential purchases—groceries, children’s clothing, gas—or if you’re opening a new plan to cover the payment on another one, it’s no longer a convenience tool: it’s a sign that your budget is under strain. Now is the time to take stock, before your credit card takes over.

A simple, concrete example

Take Alexandra, a 29-year-old project manager in Montreal. Good job, no late payments, no apparent “major” debt. But over the course of the year, she racked up debt without realizing it: a winter coat in four installments, furniture in six, a travel package in twelve, plus a few online purchases. All told, her deferred payment plans totaled nearly $4,200, spread across four vendors.

The wake-up call came one Thursday: three direct debits on the same day, an overdrawn account, bank fees, and then the reflex to “plug the hole” with her credit card—which was already at $14,000. When she added it all up, Alexandra owed more than $18,000, without ever having felt like she was “getting into debt.”

During his first—free—meeting with a BRESSE advisor, we did what no one usually does on their own: we added it all up. After analyzing her budget, a repayment plan of about $200 per month for 60 months allowed her to consolidate all her debts—deferred payment plans and credit card debt—into a single fixed, interest-free payment, with collection calls and late fees stopping immediately. She was able to breathe a sigh of relief again—and, most importantly, gain a clear picture of her finances.

Every situation is unique: the amounts vary depending on your income, assets, and debts. That’s what the first meeting is for—to determine these details, backed by the numbers.

Taking Back Control: Where to Start

The first step costs nothing and requires no paperwork: make a list of all your deferred payment plans, add up the balances, and include your other debts (credit cards, lines of credit, loans). Simply seeing the actual total—which often comes as a surprise—changes your perspective. If this total worries you, or if your payments are eating into your money for essentials, a licensed insolvency trustee can walk you through your options, from simple budget reorganization to a consumer proposal.

At BRESSE, you’ll meet an experienced professional—not a sales representative—from your very first appointment. For nearly 40 years, our intimate-scale firm has been supporting people with diligence, honesty, and without judgment. Our role is not to sell you a legal service, but to tell you frankly which option is best for you—even if it’s a solution that doesn’t require our involvement.

💡 Good to know
The first consultation is free, confidential, and with no obligation—in person at our offices in Quebec City or Montreal, by phone, or via video conference. An appointment is usually available within 24 hours.
Don’t let the invisible become unmanageable

Deferred payment isn’t bad in and of itself. The danger is that it makes it easy to take on debt and hard to see it coming. The sooner you get a complete picture of your debt, the more options you’ll have—and the simpler they’ll be.

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