The True Cost of Buy Now, Pay Later: Why BNPL Stacking Triggers a Q1 Debt Hangover

With the Bank of Canada policy rate sitting at 2.50% and standard unsecured credit card purchase rates hovering at 20.99% to 22.99%, Canadian consumer credit remains expensive. As households approach peak Q4 retail spending, point-of-sale installment platforms—such as Klarna, Afterpay, and Sezzle—have positioned themselves as the interest-free alternative to traditional revolving credit lines. Marketed as modern budgeting tools that divide purchases into four equal, bi-weekly installments, Buy N