It makes me sad to think we’re living in a world where people finance the purchasing of clothes or a blender on Amazon. Folks, if you don’t have enough money to buy such small things in full…wait until you do!
Thanks for putting the word out on this. Because of those high merchant fees, the merchants will then increase the price of their goods and cause inflation which affects everyone including people who don’t use these services.
They don't need to do that. They're already making money by taking the money upfront from these companies who are then on the hook for worrying about repayment. They're getting more revenue more immediately from people overspending and impulse buying
Only time I've used one is to buy a bed.. we desperately needed a new bed because my back pain was affecting my work. I'm pleased to say I just paid it off a couple months early
thats why I only use 1 if not max 2 BNPL services. Either way, it serves as credit cards for those who aren’t eligible yet to apply. Its still a smart way to forecast spending while not entirely splurging your cash in hand. As long as the due dates are in line with an upcoming salary. Spend smartly everyone! ❤
It’s fine if you do BNPLs one at a time and reserve it just for medium-sized purchases that’d otherwise be beyond your monthly spend in total, but the instalment is within your budget for said item(s). Example, a brand new set of car tyres can be prohibitively expensive at once but it can be feasible if responsibly done on BNPL.
I can afford it and I’ve never been late let alone run out of money. That said, I currently have like, 7 concurrent payments and I’m starting to realize I should slow down even if it’s within my means.
If you can’t afford to pay for it right then and there, no, you l can’t afford it. “Affording” a payment is not the same as being able to afford the item. Saying “I can afford it, but now I have 7 concurrent payments” is like saying “I do not have to go the dentist, that being I have 7 cavities”.
It’s a good tool if used wisely. Keep the number of BNPLs small so that they can be tracked in conjunction with your paychecks and budgeted out accordingly. It’s great for emergencies that you didn’t plan for but can pay it off early to avoid interest too.
These are predatory and designed to be convoluted behind the scenes. Somewhat unrelated: I was recently asked to apply for a store card and apply my less-than-$10 purchase on it. Wow they're desperate LOL
If you’re out of debt and can manage your money then there’s all the reason to use BNPL. The merchants are footing the cost of the loan in actuality so that means they’re adding that cost to the goods sold, so the consumers are paying for it wether or not you use it. Besides, an interest free loan is almost always a good thing.
I'm a guitar junkie and love them. But as I read Rich Dad Poor Dad by Robert Kiowski ...in today's economy I have been investing my money interested of buying another guitar. I know that the salesmen at the store don't like it. They tell me to put it on layaway and put down payments on the guitar and I have 6 months. I told them no, I need to put some wealth first...then if the guitar is there when I'm ready, I'll buy it
one of the best ways to use the buy now pay later loans is to first determine when it will need to be paid by. Then take the money you would have spent on the item and invest it into a bank cd or some other low risk investment during that period. Then when it comes time to pay the bill you have made money from the money that will be used to pay back the loan as it is usually 0% interest for 1 year.
I've never used a BNPL service, but I think it's possible to be smart and strategic with them should the need arise, like for high-dollar appliance or furniture replacements. But things like Klarna on fashion and makeup stores is so evil imo. Such a predatory way to try and force people into bad consumerism habits.
I know it I’m different here but these buy now pay later are lifesavers for me. I live in arctic where everything gets 2-3x the normal cost. I get to go to the south 1 month/ year. I use these programs to bulk buy, have it shipped up and pay back the debt throughout the year where we have almost no chance to spend money. It saves me a ton of money just doing this.
I use these all the time to flatten out big purchases over a few months. If I pay all at once, I feel like "oh this is just a special one-off expense". If I buy over time, I feel the purchase bite me 4 times, and that feels more real. I think the main thing is : if you use it to buy stuff you can't afford, you're doomed. But if you have plenty enough money, there's literally no downside.
Credit cards are the same thing except that if you pay off your credit card in full at the end of the month, you don’t get dinged any interest, and you don’t have to juggle all the different payments, and it benefits your credit if you make the payments on time. Don’t finance things directly with the retailer, unless you have a very good reason to have some kind of rewards account open with them. Don’t turn individual purchases into loans
What if you had the money, but choose to use BNPL as the merchant does not offer a discount to pay in cash and the cash you do not use it you invest in in a high interest savings account? Would be a bad idea?
My dad makes crazyyyy money but is “poor” bc he’s always wasting it financing things he doesn’t need. It makes me sick and he’s too arrogant to listen to me with my high credit score and humble living 🙄🥴
Cool that the rest of the world figured something we have in Brazil for the past two decades... and it ruined many lives. These "loans" should be called "Buy Now, Pay Forever"
In Ukraine, this program is a part of the banking system. Most use two banks app max, so it's easy to track with notifications. Also, they are really 0%, you pay exactly what you must.
Rent to own type scam. You just pay higher prices for lack of self discipline and patience. I can patiently do without for a long long long time. Most stuff ain't worth the effort to get it. Go ahead. Jump in. I'm waiting for the that's all it does reaction.
Does that mean if I default on my buy now pay later it won’t get reported to the credit bureaus or is that the only thing they report? If it doesn’t get reported then to quote Homer Simpson when he got a crayon 🖍️ shoved into his brain “default! Default!”
It makes me sad to think we’re living in a world where people finance the purchasing of clothes or a blender on Amazon. Folks, if you don’t have enough money to buy such small things in full…wait until you do!
how else will they be able to buy their designer brand clothing?
@@michael567jober by either avoiding it or waiting till they have hard cash for payment.
Why somebody is so desperated by so much that they are taking us so many loans to begin with
What do you think credit cards are? The same thing, so people shouldn't use credit cards either?
@@allways8782 correct. unless it’s for big purchases like furniture, tools, machinery etc
It's amazing how big corporations keep outsmarting consumers in order to take their money. Always keep your eyes open for high hidden fees.
Outsmarting? They are just capitalizing on idiots
Thanks for putting the word out on this. Because of those high merchant fees, the merchants will then increase the price of their goods and cause inflation which affects everyone including people who don’t use these services.
They don't need to do that. They're already making money by taking the money upfront from these companies who are then on the hook for worrying about repayment. They're getting more revenue more immediately from people overspending and impulse buying
Our world would be a better place if we'd all learn to delay our gratification just a bit. We've practically turned shopping into another drug habit.
Shop therapy :(
Ah - just like youtube shorts...
LayAway ! In the 80s!
With layaway, you didn't get the product until it was completely paid for. That is totally different from BNPL.
May I never use one.
Well said, eevee =)
Only time I've used one is to buy a bed.. we desperately needed a new bed because my back pain was affecting my work. I'm pleased to say I just paid it off a couple months early
I am very sorry for your loss
thats why I only use 1 if not max 2 BNPL services. Either way, it serves as credit cards for those who aren’t eligible yet to apply. Its still a smart way to forecast spending while not entirely splurging your cash in hand. As long as the due dates are in line with an upcoming salary. Spend smartly everyone! ❤
Doesn't even build you credit. BRUH
It’s fine if you do BNPLs one at a time and reserve it just for medium-sized purchases that’d otherwise be beyond your monthly spend in total, but the instalment is within your budget for said item(s). Example, a brand new set of car tyres can be prohibitively expensive at once but it can be feasible if responsibly done on BNPL.
What if I told you I wait until I have the cash to buy something and avoid consumer debt (except mortgages) altogether...
You got a mortgage? I paid cash for my house.
Basically credit cards with extra time to pay it off but no rewards.
You really have to guard yourself in so many ways, it’s sad the world we live in
Dave would be livid🤣🤣
ya lol. these people definitely don't watch Dave!
I can afford it and I’ve never been late let alone run out of money. That said, I currently have like, 7 concurrent payments and I’m starting to realize I should slow down even if it’s within my means.
If you can’t afford to pay for it right then and there, no, you l can’t afford it.
“Affording” a payment is not the same as being able to afford the item.
Saying “I can afford it, but now I have 7 concurrent payments” is like saying “I do not have to go the dentist, that being I have 7 cavities”.
If somethings sounds too good to be true, that's when you say "sus."
I worked for one of them. People who are already struggling can't keep up with the payments and their already low credit scores get hit hard.
It’s a good tool if used wisely. Keep the number of BNPLs small so that they can be tracked in conjunction with your paychecks and budgeted out accordingly. It’s great for emergencies that you didn’t plan for but can pay it off early to avoid interest too.
It’s called an emergency fund.
These are predatory and designed to be convoluted behind the scenes.
Somewhat unrelated: I was recently asked to apply for a store card and apply my less-than-$10 purchase on it. Wow they're desperate LOL
If you’re out of debt and can manage your money then there’s all the reason to use BNPL. The merchants are footing the cost of the loan in actuality so that means they’re adding that cost to the goods sold, so the consumers are paying for it wether or not you use it. Besides, an interest free loan is almost always a good thing.
I'm a guitar junkie and love them. But as I read Rich Dad Poor Dad by Robert Kiowski ...in today's economy I have been investing my money interested of buying another guitar. I know that the salesmen at the store don't like it. They tell me to put it on layaway and put down payments on the guitar and I have 6 months. I told them no, I need to put some wealth first...then if the guitar is there when I'm ready, I'll buy it
We always pretend generational wealth is a good thing and never speak about generational poverty.
With the exception of a house, good debt, emergencies and possibly a car - if I need a loan it means I can't afford it
one of the best ways to use the buy now pay later loans is to first determine when it will need to be paid by. Then take the money you would have spent on the item and invest it into a bank cd or some other low risk investment during that period. Then when it comes time to pay the bill you have made money from the money that will be used to pay back the loan as it is usually 0% interest for 1 year.
I've never used a BNPL service, but I think it's possible to be smart and strategic with them should the need arise, like for high-dollar appliance or furniture replacements. But things like Klarna on fashion and makeup stores is so evil imo. Such a predatory way to try and force people into bad consumerism habits.
When you know better you do better.
I know it I’m different here but these buy now pay later are lifesavers for me. I live in arctic where everything gets 2-3x the normal cost. I get to go to the south 1 month/ year. I use these programs to bulk buy, have it shipped up and pay back the debt throughout the year where we have almost no chance to spend money. It saves me a ton of money just doing this.
Wise words.
YAAAASSSS! I’ve been saying this for YEARS! It’s a bad habit and we need to stay away!
my mindset is if I couldn't pay it now, then I couldn't afford it now.. unless it's a big purchase like a house, car, etc.
Wait... If it doesn't report to my credit report than why pay at all?
All mental stuff I wouldn’t really be phased by so it’s still a great concept
Thankfully it helped me buy my wife a flute. Instruments are expensive these days.
You went into debt for a damn flute. 🤣🤣🤣🤣 I have heard it all now 🤣
@@Scarface_445 Not debt I had the money to pay in full. But I don’t mind splitting a 800$ payment into bite size pieces over a month.
@@tonyfiorillo2678with interest how much did you end up paying?
I use these all the time to flatten out big purchases over a few months.
If I pay all at once, I feel like "oh this is just a special one-off expense". If I buy over time, I feel the purchase bite me 4 times, and that feels more real.
I think the main thing is : if you use it to buy stuff you can't afford, you're doomed. But if you have plenty enough money, there's literally no downside.
I use it because it’s a free interest loan. Why wouldn’t I? I can buy it outright, who cares.
Did know this existed, don't know how to use. Lucky me.
I use an auto installment payment CC which is effectively BNPL anyway
Using one of these is the personal finance equivalent of smoking crack. Better off not starting… future you will thank you
Credit cards are the same thing except that if you pay off your credit card in full at the end of the month, you don’t get dinged any interest, and you don’t have to juggle all the different payments, and it benefits your credit if you make the payments on time.
Don’t finance things directly with the retailer, unless you have a very good reason to have some kind of rewards account open with them. Don’t turn individual purchases into loans
What if you had the money, but choose to use BNPL as the merchant does not offer a discount to pay in cash and the cash you do not use it you invest in in a high interest savings account? Would be a bad idea?
You’d be hard pressed to find a saving account that provides more interest then the BNPL company
My dad makes crazyyyy money but is “poor” bc he’s always wasting it financing things he doesn’t need. It makes me sick and he’s too arrogant to listen to me with my high credit score and humble living 🙄🥴
Cool that the rest of the world figured something we have in Brazil for the past two decades... and it ruined many lives. These "loans" should be called "Buy Now, Pay Forever"
In Ukraine, this program is a part of the banking system. Most use two banks app max, so it's easy to track with notifications. Also, they are really 0%, you pay exactly what you must.
Facts
I mean if they don't report to credit bureaus... lol
The way the lady said apps is really frustrating😅
Hey wait a minute Where is the mustach ????
What??? He shaved it off year or so ago. You noticed it now
dont buy. just dig around your house and use whatever you have
How is this different than payday loan?
PayPal Credit, Affirm, AfterPay and Klarna I'm looking at you. 👀
Technically all credit cards are buy now and pay later
If you read the comments it’s literally people who do not have an emergency fund. 🙂↕️🙂↕️🙂↕️
Rent to own type scam. You just pay higher prices for lack of self discipline and patience. I can patiently do without for a long long long time. Most stuff ain't worth the effort to get it.
Go ahead.
Jump in.
I'm waiting for the that's all it does reaction.
lmao all these people trying to justify living in debt... live at the speed of cash!
No and no credit cards are not very interested they get you in trouble and you know so think before you dig
This isn’t really regulated, pray on the most weak and desperate and that one time you miss the Payment, hello 60% interest and harassing calls
Very dangerous
Why over complicate it, just use a credit card
Does that mean if I default on my buy now pay later it won’t get reported to the credit bureaus or is that the only thing they report? If it doesn’t get reported then to quote Homer Simpson when he got a crayon 🖍️ shoved into his brain “default! Default!”
Yeah it's scary dude
Grow mustache, shave later. 😉
Save now and unable to buy later due to skyrocketing prices instead 👍
Lesson, some self-appointed financial soyjacks don't want to learn
gay. just use a debit card, or even better cash, and be happy.
Progressive
Banksters propaganda lol