The PROBLEM With Buy Now Pay Later

All these planted commenters is absurd. This company is the absolute worst

I’ve used these services (Sezzle, Affirm, Klarna) over the past year or so and the point of the video is well-taken: if you don’t watch yourself, it is easy to get yourself into trouble by over spending. To be sure, I did catch myself buying way too many ‘impulse’ purchases simply because it hurt much less paying 1/4th upfront; Only to find myself making all kinds of installment payments for weeks/months thereafter. Once I learned that lesson, however, they’ve come in handy multiple times simply by facilitating the transactions whilst minimizing the amount of cash/credit paid out initially. I’ve been trying to keep my credit usage at 30%-50% or thereabouts and, when I need to make a larger purchase, it helps to be able to break it up into 4 payments. Also, making much larger purchases is much easier (without maxing out my cards) thus allowing purchases I would not be able to otherwise make, so they definitely have a use if you’re responsible. As for the companies themselves, all of them are very transparent with the payment amounts/dates and they will allow you to reschedule should the need arise - I have found customer service to be excellent - so no complaints there.

So dude pretty much saying don't overspend lol bruh saying too much

Notice its young people saying this .. hey how about credit card companies or check into cash places. You are loaning money pf course its an expense when they pay the whole thing for you. You and other people dont understand that 1 you have to be responsible and not by everything and load. Cough you know like a credit card cough. Notice people its only about these aps and no credit card companies or banks they talk about. Which charge higher and damage your credit and Reposition and jail. So yea self control... pay yoir payment installments ans dont buy anything till your done and have more money in bank

yesterday i buy new book, the book so nice

Thank you for making this video. I was trying to determine whether or not to start using Klarna for payments that it really isn't necessary for, but I wanted to build my purchasing power on their website. Your description on how more people using this service will raise the prices overall on websites made me decide not to bother.

This wasn’t even a negative vid so this dude just made us want to get it than to not doing so 🤦‍♂️

I used this service twice & that was enough for me to realize how bad it could quickly get. I paid everything on time but I definitely spent more because of it. I refuse to use them now. If I don’t have the money then I’m not buying it.

I have used afterpay to pay for food and school supplies when in a pinch. I only use it as a last resort.

Lol so pointless. It’s not about affordability. It’s about east of use and make it easier to make the payments.I set it to auto payment so I never miss a payment.

Save now pay later. For us Millenials....layaway

Great video, super thorough! Thanks Daniel!

I have used MANY of these pay in 4 plans, I have never missed a payment. But you are right, at one point I had too many Pay-in-4s running and it got expensive FAST.
I still use them, but sparingly, ideally, I want to stop using them, but if I do, I make sure to plan ahead and only do a couple at a time depending on the amount. I would never use them for anything below $90 or above $400, and 400 is pretty high, ngl.

However, "Save Now Pay Later" is a much better option!

I definitely have handsome, thanks 😊

I used them all and I have no problem. Easy to you and if you know how to manage your money you be o k.

Lol I racked up about 6,000 in affirm loans before I realized it. I just paid them off and swore I would stop but I didn’t. I like it because I don’t see a point in credit cards with this option. I just carry on large credit card for an emergency now. I get almost no interest with affirm now and definitely less interest then the credit cards, I would rather pay one small interest fee then potentially months of interest with a credit card

No, they pay the same amount for debit and credit cards. If you dont have a rewards card, they just keep the fee. Cash can actually be more expensive to pay in

All debt is just debt. Except european student loans.

13 minutes to say what should have been conveyed in two minutes.

I disagree. Those buy now pay later company is blessing in sky it give you more time and fixing your budget

It is good when it comes out of my bank account. No interest. Done.

Bnpl is legendary, I recommend everyone to use it, just be responsible and don't miss a payment because you'll get charged interest, it's simple!

Thanks, very usefull info, 👍🤘

I've never used Affirm or any of these services, but I'm huge fan of Max Levchin. You should really go listen to any of the podcasts he's been and actually learn about the mission he's on. It's easy to assume the worst and that BNPL is just another way to sink people into debt. It's there to provide helpful resources to people who would otherwise be preyed upon.

I like karna, it helps meet my budgets

Lol i mean y’all don’t pay off ur shit? Ppl saying accumulating debt is just not financially responsible

What if you use it to buy something for your business?

Apple just put out a $3500 USD pair of AR goggles and have their own BNPL service.

They are about to enslave a lotta people.

Been using for 3 years never had any issues

I use affirm and I set up autopay with zero problems. This is more like a lack of discipline video lol🇺🇲

Love the content but my guy, stop moving your head and hands so much while talking. Is incredibly distracting. Someday you will find a plane landing over your head, you just need those orange sticks.

he just keeps rambling on. where's the scary truth?

I used BNPL on items that I need but at discounted prices only. I love it, not going to lie about it. I use spreadsheets to watch payment dates and pay ahead of the timeframe.

I think Buy now pay later is fine as long as you know what you and you don’t.

Yes, you can like with four pair of clothes and two pairs of shoes ideally but unless you are minimalist, that don’t make sense tbh.

This method of payment has actually changed my spending habits and how I paid. I have stopped using credit cards and like the discipline of fixed payments. Also has boosted my credit scores

😂 dont talk of what you dont know...

I've heard Affirm and companies like that will start affecting our credit scores here soon. I remember when I first signed up for Affirm, they specifically said they didn't affect your credit. IIRC they didn't report to the credit bureaus at the time?

I'm setting up Affirm right now for my business. We as a business pay a 5.99% + .30 fee per transaction. That is the basic package, we the business is paying for your 0% if you qualify got that for 6 months. The premium plan is 9.99% + .30 per transaction...but that offers longer 0% APR's which just means we are paying for it not the customer. We can give people that walk in a better deal then using Affirm but Affirm does allow someone to spread the cost out.

Buy 2nd hand and pay with cash for everything!!!!..........including your women!!! .lol lol lol!

I’ve used the ‘buy now pay later’ method for about a year now, using Affirm/Klarna/PayPal.

I tend to use them for concert/sports/events tickets. While it does offer interest free if paid within 4 payments, Interest goes to 29-35% if you choose to pay within 6-12months.

Tho I know it’s not the most financially responsible move, I tend to pay it off pretty quickly, way before the deadline most of the time paying very little interest. I rather use that than my credit card to not raise the usage on my card. It sucks it doesn’t report to your credit report for good payments, but then again I’m not relying on it or using it with the intent of credit establishment.

I’ve had a good experience as of now

i used affirm to literally buy a mini truck I have no regrets, it’s paid off, and boosted my credit

I use affirm for big unexpected purchases because it tells you straight up how much you would pay with interest. Never had any issues with affirm everything is straight forward and at the end of the day you have to decide what works for you and be responsible.

these are silkroutes, it is not only money but traveling along complete shopping cities advertising and making you spend all you can

$3 bucks extra to let me enjoy my money while earning more money. I like it

When they get enough market share, it is likely they will no longer be interest free. Most of these companies are now loss making and they need to find a way to make profit when the time is right, i.e. when the market share is large enough and their customers are so addicted to this buying habbit

I bought my house cash. Thinking of buying my next car cash. I’m not a fan of payments.

It helped me i need a part for my car and it was one of those days a friend told me about afterpay .i tried it and that was it i wasnt about to to run it up on stupid things as i once did.. funny at this point in my life i worry about paying anything back on my credit or not.. living off an 850 street credit score didn't help that day

Is there late fees?

What about if it's on sale and you can't buy it? Lol, we live in a material world! I'm getting it now!