There is a new kind of debt in the Gulf. It does not look like debt. It does not feel like debt. It arrives at the checkout as a button that says: “Pay in 4 installments, interest-free.”It is called buy now, pay later (BNPL), and it is quietly becoming one of the most significant financial traps facing Gulf professionals today. In this episode, Fahad Al Rawahi explains why and how to get out.What you will learn:🔹 Why BNPL is different from traditional debt Traditional debt is visible: you sign a loan agreement, see the total balance, and receive monthly statements. BNPL feels free in the moment. A $500 item becomes 4 payments of $125, and each one feels small. The impact stays invisible until you have 8 active plans running at once and your salary disappears the moment it arrives.🔹 Designed to remove the pause BNPL is built to reduce friction at the point of purchase. Its purpose is to remove the moment where you might stop and ask: do I actually need this right now?🔹 The Shariah dimension Many BNPL products are genuinely interest-free at the point of sale, if you pay on time. But read the terms. Miss a payment, and most providers charge late fees that work economically like interest, sometimes higher than conventional loan rates. Beyond the technical question, the habit BNPL encourages- consuming now and paying later again and again- is fundamentally at odds with the financial discipline Islamic values promote.🔹 The hidden impact Active BNPL plans cut your disposable income in future months, making it harder to cover essentials, save or invest. And because they are often not captured in credit bureau reports, you can pile them up with no external check on the total.🔹 Why it is riskier in the Gulf If your job ends suddenly, sometimes with 30 days’ notice, BNPL payments do not pause. They keep hitting your card on schedule, and without income they become problem debt almost immediately.🔹 The four-step way outAudit: list every active plan, the total balance, the monthly payment, and the payoff date. Most people are shocked by the total.Stop adding: any purchase that needs BNPL to be affordable is a purchase you cannot currently afford.Close them out, smallest balance first, like the debt snowball: quick wins and fewer obligations.Build a buffer: one month of discretionary spending saved separately, so future purchases need no deferred payment at all.🔹 Your future self deserves better BNPL borrows from your future self to fund your present self. Every time you choose not to defer a payment you cannot truly afford, you choose your goals over someone else’s installment schedule. Over a year, that choice compounds into fewer obligations, clearer cash flow, and a real buffer.This week: do the audit. Then make one decision: no new installments until the old ones are cleared.Know someone carrying more BNPL than they realise? Share

EP 24: The Credit Trap: Buy Now and Pay Later

Get Started

Download the App