125
'Buy now, pay later' is sending the TikTok generation spiraling into debt
94% Upvoted
level 1
· 8 hr. ago
Martha Nussbaum
did no one here read the article wtf this isn’t about credit cards it’s about klarma’s business model
55
level 2
· 5 hr. ago
Bisexual Pride
People not reading the article before commenting? In my r/neoliberal???
It's more common than you'd think
42
![User avatar](data:image/svg+xml,<svg xmlns="http://www.w3.org/2000/svg" width="256" height="256"><rect fill-opacity="0"/></svg>)
level 2
while Afterpay offers zero-percent interest on every purchase, assuming that the user can pay on time.
Why isn't everyone using this for everything? In a fairly high inflation enviroment I'll absolutely take a 0% loan that I get to pay back with dollars worth less than they gave me.
14
level 1
· 10 hr. ago · edited 10 hr. ago
Mark Carney
Here's an article which explains the financial mechanics of BNPL. It also explains how these services make money without charging "interest."
24
level 1
· 13 hr. ago · edited 12 hr. ago
Trans Pride
Hasn't this been in an issue before in previous generations, the idea that credit card = free money? I swear we've had stuff like Affirm in the past with payday loans. I feel like this is just a continuing trend that we teach fuck-all about how to handle large amounts of money or credit in America. As a full time college student, I feel guilty ordering takeout, much less spending my student loans on designer clothes.
156
level 2
· 10 hr. ago
NATO
I feel like this is just a continuing trend that we teach fuck-all about how to handle large amounts of money or credit in America.
This is an annoying talking point. The info is out there; revealed preferences say people just don't give a shit. We give tons of financial workshops; no one listens.
120
level 2
No you don’t understand the value of deferring payments. Why would someone pay 100 dollars up front for something when they could pay only 25 dollars and put $75 into some crypto that loses 30% of its value every month?
47
level 2
This a repeat. People always do stupid things when given credit. It’s up to each generation to learn the lesson all over again.
15
level 2
· 3 hr. ago
Codename: It Happened Once in a Dream
Yea...back when Gateway was a Hip computer Company selling $2,000 computers at Best Buy
4
level 2
The difference is how easy these apps are making it to borrow, as well as how people are perceiving it as "free". Some of the services don't charge interest until you miss payments.
People should still be able to spot this for what it is, but some people just don't understand interest or aren't very future-oriented.
2
level 2
· 2 hr. ago
NATO
It's much easier today. I'm actually surprised how often I see affirm buttons on websites that literally just take one click.
Even as someone that makes good money and is financially sound, it's tempting to do it because it's so easy.
1
level 1
Bold of a San Francisco newspaper to say that it's Gucci bags driving kids into debt and not, like, rent.
66
level 1
How’s this different from previous generations?
Fucking joke blaming things on the product when the focus/blame needs to sit with the consumer. Personal responsibility etc etc
32
level 2
· 3 hr. ago
Milton Friedman
Well are we talking all previous generations or just ones before the current one? Because people who lived through the depression just did not use credit unless absolutely necessary. All the old people I knew hated the idea of owing anyone anything (except family) and were convinced credit was the devil. Now sure that may be too far in the other direction, you are losing out of potential gains and savings if you use credit correctly, but I would much prefer that to "Lulz it's free money Oh no I have to declare bankruptcy because I bought too many outfits on credit."
2
level 1
Useless article. Did you know I can buy a house today and pay it off later after 30 years are up?
14
level 1
It's only a mater of time until the "progressives" shift from wanting their student debts paid off by the taxpayer, to their credit card debt and mortgage.
35
level 2
Op · 13 hr. ago
just another organic machine
Credit card debts aren’t owned by the federal government. And to buy them would either mean a massive forced sale or the government likely paying a hefty premium on what it’s worth.
This is where someone pops in to say “since when have progressives ever cared about the facts 😂” but at least at the upper level of progressive power, I’m highly skeptical that we’re going to see AOC or Bernie calling for the federal government purchasing credit card debt anytime soon.
72
level 2
· 12 hr. ago
United Nations
I think the big issue with student debt is that it can't be discharged via bankruptcy, credit cards and other loans can.
I don't doubt that if student debut could be discharged via bankruptcy we'd see a lot more people shirking their financial responsibilities and doing that.
24
level 2
You can discharge CC debt in bankruptcy.
To discharge a federal student loan you have to die.
13
level 1
No worries. Progressives soon enough will be asking ALL debt to be cancelled. Spend away.
4
level 1
Oh no shit. When they started allowing people to buy plane tickets and clothes using Klarna, I knew that was a wrap.
2
level 1
level 2
· 11 hr. ago
NATO
The article is referring to companies such as Klarna rather than traditional credit cards
18
level 2
I kinda like using mine responsibly and getting good credit as a youngster. Having a bank credit card as my oldest line of credit is pretty convenient for that.
46
level 2
· 12 hr. ago
YIMBY
I’m 20 and have never missed a payment. I just don’t spend what I don’t have.
38
level 2
On the other hand, young people in many situations need access to credit. If you can’t get a CC until you’re 25, is there any chance you can get approved for a decent sized mortgage in your 20s?
If you’re working a job that doesn’t pay until 2 weeks after you start, or you have a surprise expense that you have to pay, there needs to be some legal way to borrow money, or we’ll end up with a lot more black market loan sharks and pawn shops sprouting up
22
level 2
You can take my ultimate rewards points from my cold dead hands!
7
level 2
· 11 hr. ago
NATO
I did feel the sheer number of credit card companies present around trying to get freshmen to sign up for cards was concerning.
But they’re adults…so pretty hard to say you could/should ban them from financial resources.
6
level 2
· 11 hr. ago
Kofi Annan
I got my first one at 19, and have paid off my balance in full every month for over 5 years now. Don’t punish reasonable people for a handful of idiots who can’t comprehend how money works
12
level 2
If you can’t handle a credit card you aren’t capable enough to vote responsibly. We shouldn’t raise the voting age. We need to improve our education, not protect idiots from themselves.
4
level 1
· 4 hr. ago
r/place '22: SWS Battalion
So pretend I'm an idiot (because I am in this topic) - what's the difference between "buy now pay later" and good ol' fashioned loan-sharking, with the exception that you get to keep your kneecaps when your fees are overdue?
1
level 2
Here in Australia BNPL is generally limited to retail, and caps at $1000 for new users. If you use it wisely and pay back on time, zero interest and that $1k cap increases.
I've used it many times to space out big purchases like a washing machine and bed base / matress. Instead of a big 1k or 2k up front cost, I am to lower the initial up front cost and spread the rest out over 8 weeks.
2
level 2
· 3 hr. ago
Codename: It Happened Once in a Dream
Loan Shark is an unregulated casual loan with as best I've heard no written agreement.
Payday Loans lend money based on written competitive agreements
Buy now and Pay later are a step up from that and are provided by the Retailer to increase Sales
1
level 2
· 1 hr. ago
Kofi Annan
Loan sharking/payday loans come with exorbitant interest rates
Buy now pay later is interest free, unless you’re dumb enough to miss two payments. Then you get hit with exorbitant interest rates
1
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