People using pay later for things with a shorter lifespan then the loan itself is a major red flag (fast fashion, wedding dresseses, toiletries etc). When its 'oh no my oven broke and I can't afford a new one until payday but desperately need one' then using it makes a bit of sense. There are some desperate people using them for groceries and shampoo which is very sad and a bit of a vicious cycle for those who struggle financially
@@shawnaripari this is so real. I used affirm to buy an expensive breast pump a few months ago. Not only did I hate the pump, but I also weaned two months later and now I'm just stuck with almost a year's worth of payments. 🤦🏼♀️ So much regret when I really think about it ... BUT because it's $30 a month, my brain is still like "oh no big deal" every time I get charged.
While I can imagine several hyper-specific situations where these services could potentially be helpful, they just **feel** like they’re designed to enable overconsumption.
Yes THIS. I thought about mentioning some example of situations where it could potentially be helpful but decided not to because of how these services are designed.
I saw a makeup product that was on sale for $5 the other day and it was advertised as being purchasable for 4 payments of $1.25 with Afterpay. It just made me...really sad? Like, if you literally can't afford $5 upfront, then that isn't necessarily a moral failing or anything, but I would urge people to reconsider that purchase until they can afford it all in one go. It was very much a yikes moment.
I hate any sort of "pay later". I hate pending payments. Take my money the millisecond I approve the payment. Don't tease me with money that's no longer mine. I want all the money sitting in my bank account to be truly mine. (Student loans notwithstanding.)
This Christmas, my outdoor mall had pink Klarna banners lining the streets encouraging people to buy now and pay later. It sickened me. It's just too easy to misuse. But it's good to hear they cut you off if you aren't making payments instead of letting the debt grow.
Saw it posted in the group and I’m watching it rn. I’ve used Afterpay in the past and was thinking about getting another “haul” This popped up before I did so let’s see what’s up!
I agree that it's probably really hard to use these in a healthy, non-self-destructive way. It's certainly possible, and it can be helpful at times, but the downsides are real.
I do. I just know what I can afford and don't get in over my head. Yes they send me offers all the time, but I ignore them because they can't make me do anything
I used affirm for our new mattress. It will be paid off in a year, no interest, and mattresses actually last a long time. But they keep giving me more offers to use on all sorts of other websites. It’s definitely predatory, stay alert yall!
I used Klarna to pay for a new mattress over a year. It had low fixed interest, presented right up front, and the monthly payment was something I could afford. Absolutely no regrets.
This this this. If it's something you were already going to finance then it's something else you can look at and consider. Those are usually higher ticket items. Everyday shopping? Heck no, that's just crazy.
I think for the financially literate it's a really great opportunity for people to get 0%. People need to remember to be aware the payments are coming and to have the money for them. For things like furnishing a new place when you'd otherwise be sleeping/sitting on the floor, buying a professional wardrobe that you didn't have, or replacing a broken appliance, I am all for it.
These programs can definitely be misused if you aren't conscious of how much you are spending. I personally use them for discretionary purchases within a budget if there is a sale. Like, say I was already planning on making a large purchase of collectibles and had already been saving for it. The company might have a sale that would cut the costs by at least 25%, then I might use afterpay because it fits my budget. I don't think I am the usual case, though, which is why I don't tend to recommend it to others. Especially among collectors, I think overspending and impulsive buying is too easy with afterpay.
I tried this twice, and honestly, it really made me anxious, and I paid it off well before the 6 weeks. I hate paying interest, and yeah, I just don't like these programs.
The stress of missing the due date to pay and the barely use of them are the reasons why I quit having a credit card, simply the little benefits didn't compensate the stress I was having.
Great topic! It's great to get your "no BS" take on this. I really have noticed that these BNPL programs are emphasized the very most on websites that sell completely unnecessary items (like makeup). And I totally am not surprised by the data you found about how these programs are used and the spending habits of those who tend to use them. These programs really are predatory and suck people further into a miserable cycle of over spending and debt. I find it particularly gross that they sell themselves to companies by basically saying that the make people overspend.
I live in Brazil and this “pay later” option always existed, so people are always paying one of the part of something. It’s kinda fucked up, that people are used to buying things that they don’t have the money upfront
I am REALLY loving the content yr putting out there lately! Came just in time too,I am graduating soon and I still have trouble budgeting but you make it seem so easy 😅
While it won't impact credit score (unless it gets reported) or growing credit history BUT it can be seen as a "non-traditional line of credit" which can be used for those with no/low credit to qualify for future lines of credit. Non-traditional credit can be anything that gets paid regularly, on time, and for a long enough duration. It's 100% a slippery slope if you are trying to use it to "improve" credit without understanding how credit gets built over time. It is always a good idea to discuss building credit with a trusted financial advisor.
I use Affirm twice, once for diabetic stuff for my daughter while the doctor's sorted out why she didn't get a lot of supplies for the month, and again when I needed to purchase a new bed. I can't do these anymore because I get a sum of money monthly, and I'm not having money pulled from my accounts every two weeks. I'm finished paying off one purchase, and I have a little left to go on the other. This video has me rethinking it, but I might do it one last time to get storage organizational stuff because I need to lol.
Ooh yes this annoys me too. Companies such as BNPLs and sellers of very cheap things like fast fashion, Temu etc just LOVE the aura they are awarded that they are helping those who can't afford things. But they don't care about those people because they don't have enough money to be bothered with. It leaves a bad taste in my mouth. I completely understand why it is so tempting though.
I’ll do payment plans if it’s no interest, and if I know I already have the money to pay it off. The reason is the same as why it’s actually not great to get a tax return: you can have that money in a high-yield account and make money on it. You need to be responsible with your money to do that, though.
As a child i grew up very poor. My mum taught me if i couldn't afford an item outright,like a phone,than i couldn't afford it,and should save up until i could afford it outright,which is great as i have no debt,and im not obligated to anyone...
I’ve used afterpay a number of times, but my rule is that I only use it if I *could* afford to pay it outright but don’t want to for whatever reason. As an example, I needed to get a new pair of running shoes because mine were old and causing me a lot of pain when doing more vigorous workouts, but I hadn’t planned to have to do it. Could I have afforded the $80 shoes? Yes. But would I prefer to just have $20 on my credit card statement every two weeks, especially since I typically pay my bill every two weeks when I get paid? Also yes.
This was eye opening. I've never used one of these. I don't realize it was a line of credit. I thought it was a per product thing. I can see how easily this would become a revolving door of neverending debt. Any time you paid a chunk off, you'd just buy something else with that credit availability.
I love afterpay but it def makes me overspend. It is useful if you have no food money and need 50 dollars worth of groceries with only 15 bucks. But I use it way too much for clothes and crap I don't need.
The ONLY time I use Klarna is when I purchase clothing and I know I will be sending stuff back after trying everything on. That way I only pay what I actually keep as the return is already processed before I have to pay anything. Better than waiting for a refund
As a fellow Canadian, who actually works in the banking systems. The thought of after lay programs are sinister and have been a big cause of the need of debt consolidation loans. Additionally, just hearing a RUclipsr say "Equifax" was gob smacking to me 🤣🤣 so Canadian specific
Im currently trying to pay off my zippay debt, down to $1050. I'm hoping to pay off the debt by the end of this year. I have $430 after pay debt, I had to buy new bras, skincare and books (my Kindle won't charge properly). I'm going close off zippay once it's paid off and keep afterpay, I would close it off but sometimes I run out of things I need.
I dont want to be rude in any way I just want to comment for you to think about your mindset, but when you say “had to” and “need” are they really needs? Bras makes sense. In terms of skincare, was it basic needs like moisturizer, cleanser, an important treatment, etc? Or was it things like face masks, acids, exfoliators, etc? And even if it was things like a moisturizer, did you get ones that were mid-priced/high end when you could’ve had similar ones from the drugstore. When it comes to reading, I understand your kindle didnt work, but were the books for enjoyment or necessity (school, etc)? And if they were for enjoyment, you couldn’t have gotten a library card and read some mid books for a few months while you saved up to fix your kindle? Again I can understand circumstances where they things you listed were truly needs. But if they were wants, there are other ways of going about that without needing to use credit cards/afterpay. Im not making this comment as an attack and you also dont need to respond, it was more just to give you a different way of thinking about things. You likely could close these counts and save up for an emergency fund instead and you can have the peace of mind of not dealing with them again!
@@saraashkir5793 i hope she took your comment to heart...it's impossible to escape consumerism and debt if you think of your wants as needs and don't look for alternatives.
I feel like my relationship with BNPL is interesting... I definitely have the money for these purchases. I have a lot of savings built up, but it's tempting to me simply because, if there is no interest factored in, then I can space out a larger purchase over several months and it won't affect make my monthly spending too much. This is dumb, I know, but I want to be spending about the same amount every month, perhaps as kind of a perfectionist thing, and I feel bad about myself when my monthly spending is higher... That said, I've never used BNPL and understand that I don't need to.
I used to use it a lot, but I’m trying to use it for things like furniture when I move apartments type of thing. Because why the hell is a mattress by itself $200. And a desk chair is $100. And the bedframe is $200.
I use Affirm for purchases of nice generally expensive items that I need but that it cant afford up front. A computer, a computer chair because mine was an old cheap piece of crap at that point, vacuum, a new mattress, etc. Things that i need and use so frequently in my everyday life. I could buy a $50 computer chair but id rather pay in installments to get a nicer one that will last because i use my computer chair as my everyday living chair and needed something comfortable as i crochet as well which wears out the back. So i wanted to get a nice one but cant afford a nice one outright. So the installments every month really help me to be able to have these higher priced things that i need.
these honestly don't sound like needs...they sound like wants that are easy to convince yourself are needs. like, you had things but wanted newer, nicer versions
People using pay later for things with a shorter lifespan then the loan itself is a major red flag (fast fashion, wedding dresseses, toiletries etc). When its 'oh no my oven broke and I can't afford a new one until payday but desperately need one' then using it makes a bit of sense. There are some desperate people using them for groceries and shampoo which is very sad and a bit of a vicious cycle for those who struggle financially
this is such a great point. you can be paying for things longer than their lifespan. Sometimes the lifespan is just 'interest' in the product
@@shawnaripari this is so real. I used affirm to buy an expensive breast pump a few months ago. Not only did I hate the pump, but I also weaned two months later and now I'm just stuck with almost a year's worth of payments. 🤦🏼♀️ So much regret when I really think about it ... BUT because it's $30 a month, my brain is still like "oh no big deal" every time I get charged.
While I can imagine several hyper-specific situations where these services could potentially be helpful, they just **feel** like they’re designed to enable overconsumption.
Yes THIS. I thought about mentioning some example of situations where it could potentially be helpful but decided not to because of how these services are designed.
I saw a makeup product that was on sale for $5 the other day and it was advertised as being purchasable for 4 payments of $1.25 with Afterpay. It just made me...really sad? Like, if you literally can't afford $5 upfront, then that isn't necessarily a moral failing or anything, but I would urge people to reconsider that purchase until they can afford it all in one go. It was very much a yikes moment.
this is a BIG yikes on a retailer for marketing this way. It's so gross to see companies preying on people in vulnerable positions
I hate any sort of "pay later". I hate pending payments. Take my money the millisecond I approve the payment. Don't tease me with money that's no longer mine. I want all the money sitting in my bank account to be truly mine. (Student loans notwithstanding.)
This Christmas, my outdoor mall had pink Klarna banners lining the streets encouraging people to buy now and pay later. It sickened me. It's just too easy to misuse. But it's good to hear they cut you off if you aren't making payments instead of letting the debt grow.
Honestly it was great for presents for me but I’m very stringent on my funds and how much I can spend at one time
yeah, it is better than credit cards in that respect
Sharing this to my makeup group. I know a lot of makeup enthusiasts use these cuz they are on every website pretty much
Thanks so much for sharing!
Saw it posted in the group and I’m watching it rn. I’ve used Afterpay in the past and was thinking about getting another “haul” This popped up before I did so let’s see what’s up!
I agree that it's probably really hard to use these in a healthy, non-self-destructive way. It's certainly possible, and it can be helpful at times, but the downsides are real.
Yep, definitely agree
I do. I just know what I can afford and don't get in over my head. Yes they send me offers all the time, but I ignore them because they can't make me do anything
I hate that PayPal offers the same “pay in 4” every time I pay online through PayPal I’m essentially offered a loan.
I didn't know paypal offered this program until I was researching for this video. You're so right on this
I used affirm for our new mattress. It will be paid off in a year, no interest, and mattresses actually last a long time. But they keep giving me more offers to use on all sorts of other websites. It’s definitely predatory, stay alert yall!
I used Klarna to pay for a new mattress over a year. It had low fixed interest, presented right up front, and the monthly payment was something I could afford. Absolutely no regrets.
This this this. If it's something you were already going to finance then it's something else you can look at and consider. Those are usually higher ticket items.
Everyday shopping? Heck no, that's just crazy.
This!!! I used Klarna to pay for a 14kt gold necklace. It will be paid off in a year. I'm on month 9.
You are killing it with these videos. I love it! Thank you🎉
thank you so much!!
An interesting data point would be the amout people spent on the Sephora sale before vs after BNPL
this would be an interesting datapoint. I want this data Morgan 😂
I think for the financially literate it's a really great opportunity for people to get 0%. People need to remember to be aware the payments are coming and to have the money for them.
For things like furnishing a new place when you'd otherwise be sleeping/sitting on the floor, buying a professional wardrobe that you didn't have, or replacing a broken appliance, I am all for it.
These programs can definitely be misused if you aren't conscious of how much you are spending. I personally use them for discretionary purchases within a budget if there is a sale. Like, say I was already planning on making a large purchase of collectibles and had already been saving for it. The company might have a sale that would cut the costs by at least 25%, then I might use afterpay because it fits my budget. I don't think I am the usual case, though, which is why I don't tend to recommend it to others. Especially among collectors, I think overspending and impulsive buying is too easy with afterpay.
I tried this twice, and honestly, it really made me anxious, and I paid it off well before the 6 weeks. I hate paying interest, and yeah, I just don't like these programs.
Me too! It shamed me and I think it was better than a credit card
The stress of missing the due date to pay and the barely use of them are the reasons why I quit having a credit card, simply the little benefits didn't compensate the stress I was having.
Great topic! It's great to get your "no BS" take on this. I really have noticed that these BNPL programs are emphasized the very most on websites that sell completely unnecessary items (like makeup). And I totally am not surprised by the data you found about how these programs are used and the spending habits of those who tend to use them. These programs really are predatory and suck people further into a miserable cycle of over spending and debt. I find it particularly gross that they sell themselves to companies by basically saying that the make people overspend.
It is absolutely nasty behaviour to see BNPL enticing retailers this way!!! Look we help people overspend, come use our service
yeah i just know i couldn’t use BNPL because i already have an issue impulse spending with a credit card
Glad you know yourself so well!
I live in Brazil and this “pay later” option always existed, so people are always paying one of the part of something. It’s kinda fucked up, that people are used to buying things that they don’t have the money upfront
I am REALLY loving the content yr putting out there lately! Came just in time too,I am graduating soon and I still have trouble budgeting but you make it seem so easy 😅
thank you so much! Wishing you the best of luck on your budgeting journey too
I agree I had an issue w it for a while and am trying to get out of the habit now
I'll be rooting for you!
While it won't impact credit score (unless it gets reported) or growing credit history BUT it can be seen as a "non-traditional line of credit" which can be used for those with no/low credit to qualify for future lines of credit. Non-traditional credit can be anything that gets paid regularly, on time, and for a long enough duration. It's 100% a slippery slope if you are trying to use it to "improve" credit without understanding how credit gets built over time. It is always a good idea to discuss building credit with a trusted financial advisor.
I use Affirm twice, once for diabetic stuff for my daughter while the doctor's sorted out why she didn't get a lot of supplies for the month, and again when I needed to purchase a new bed. I can't do these anymore because I get a sum of money monthly, and I'm not having money pulled from my accounts every two weeks. I'm finished paying off one purchase, and I have a little left to go on the other. This video has me rethinking it, but I might do it one last time to get storage organizational stuff because I need to lol.
never used bnpl and never will 😅
I'm glad I grew up with videos and news programs on payday loans because even though BNPL is different, it has similar predatory vibes
Ooh yes this annoys me too.
Companies such as BNPLs and sellers of very cheap things like fast fashion, Temu etc just LOVE the aura they are awarded that they are helping those who can't afford things. But they don't care about those people because they don't have enough money to be bothered with. It leaves a bad taste in my mouth. I completely understand why it is so tempting though.
I’ll do payment plans if it’s no interest, and if I know I already have the money to pay it off. The reason is the same as why it’s actually not great to get a tax return: you can have that money in a high-yield account and make money on it. You need to be responsible with your money to do that, though.
As a child i grew up very poor.
My mum taught me if i couldn't afford an item outright,like a phone,than i couldn't afford it,and should save up until i could afford it outright,which is great as i have no debt,and im not obligated to anyone...
I’ve used afterpay a number of times, but my rule is that I only use it if I *could* afford to pay it outright but don’t want to for whatever reason. As an example, I needed to get a new pair of running shoes because mine were old and causing me a lot of pain when doing more vigorous workouts, but I hadn’t planned to have to do it. Could I have afforded the $80 shoes? Yes. But would I prefer to just have $20 on my credit card statement every two weeks, especially since I typically pay my bill every two weeks when I get paid? Also yes.
"maybe i should keep using it"
*Me putting on a priest costume*
"NAH THAT'S A DEMON. ✝️🔥🔥🔥👿 😈 PUT THAT SHIT DOWN!!!"
This was eye opening. I've never used one of these. I don't realize it was a line of credit. I thought it was a per product thing. I can see how easily this would become a revolving door of neverending debt. Any time you paid a chunk off, you'd just buy something else with that credit availability.
I think buy now pay later is like a credit card, a scam to get people to feel comfortable even if they don’t have enough money to be buying things.
I could watch an infinite number of videos talking ish about BNPL
I love afterpay but it def makes me overspend. It is useful if you have no food money and need 50 dollars worth of groceries with only 15 bucks. But I use it way too much for clothes and crap I don't need.
With great power comes great responsibility. Know your limits.
The ONLY time I use Klarna is when I purchase clothing and I know I will be sending stuff back after trying everything on. That way I only pay what I actually keep as the return is already processed before I have to pay anything. Better than waiting for a refund
As a fellow Canadian, who actually works in the banking systems. The thought of after lay programs are sinister and have been a big cause of the need of debt consolidation loans. Additionally, just hearing a RUclipsr say "Equifax" was gob smacking to me 🤣🤣 so Canadian specific
Im currently trying to pay off my zippay debt, down to $1050. I'm hoping to pay off the debt by the end of this year. I have $430 after pay debt, I had to buy new bras, skincare and books (my Kindle won't charge properly). I'm going close off zippay once it's paid off and keep afterpay, I would close it off but sometimes I run out of things I need.
I dont want to be rude in any way I just want to comment for you to think about your mindset, but when you say “had to” and “need” are they really needs? Bras makes sense. In terms of skincare, was it basic needs like moisturizer, cleanser, an important treatment, etc? Or was it things like face masks, acids, exfoliators, etc? And even if it was things like a moisturizer, did you get ones that were mid-priced/high end when you could’ve had similar ones from the drugstore. When it comes to reading, I understand your kindle didnt work, but were the books for enjoyment or necessity (school, etc)? And if they were for enjoyment, you couldn’t have gotten a library card and read some mid books for a few months while you saved up to fix your kindle?
Again I can understand circumstances where they things you listed were truly needs. But if they were wants, there are other ways of going about that without needing to use credit cards/afterpay. Im not making this comment as an attack and you also dont need to respond, it was more just to give you a different way of thinking about things. You likely could close these counts and save up for an emergency fund instead and you can have the peace of mind of not dealing with them again!
@@saraashkir5793 i hope she took your comment to heart...it's impossible to escape consumerism and debt if you think of your wants as needs and don't look for alternatives.
I agree completely! Another great video! ❤
I was so disappointed to see that colorpop does this.
theyre pretty much online loansharks
I feel like my relationship with BNPL is interesting... I definitely have the money for these purchases. I have a lot of savings built up, but it's tempting to me simply because, if there is no interest factored in, then I can space out a larger purchase over several months and it won't affect make my monthly spending too much. This is dumb, I know, but I want to be spending about the same amount every month, perhaps as kind of a perfectionist thing, and I feel bad about myself when my monthly spending is higher... That said, I've never used BNPL and understand that I don't need to.
I used these a lot while struggling mostly for diapers and groceries and formula 😭 also my shefit sports bras and my running shoes lol
Can you do a video about credit card interest? New sub here
I like using them
I used to use it a lot, but I’m trying to use it for things like furniture when I move apartments type of thing. Because why the hell is a mattress by itself $200. And a desk chair is $100. And the bedframe is $200.
Reminds me of pay day loans
I use Affirm for purchases of nice generally expensive items that I need but that it cant afford up front. A computer, a computer chair because mine was an old cheap piece of crap at that point, vacuum, a new mattress, etc. Things that i need and use so frequently in my everyday life. I could buy a $50 computer chair but id rather pay in installments to get a nicer one that will last because i use my computer chair as my everyday living chair and needed something comfortable as i crochet as well which wears out the back. So i wanted to get a nice one but cant afford a nice one outright. So the installments every month really help me to be able to have these higher priced things that i need.
these honestly don't sound like needs...they sound like wants that are easy to convince yourself are needs. like, you had things but wanted newer, nicer versions
buy now pay now ❎
buy now pay later ❎
buy now pay never ✅
No interest vs interest???? Stop it lol