I miss that majestic stashe

Looks like he's transitioning

@@listerinr, it wouldn't shock me to hear that nowadays.

​@@listerinrsad if he fell for the transgender cult bs.

@@melanieortiz712 Ugh, Pop Culture.

I completely disagree. BNPL literally gives you free money at the rate of inflation. Of course there's risk but it's free money.

@@nestharus I would say generally the repayment is generally too short and for too small of an amount to benefit any real economic return. Too small of a benefit to offset the risk of missing a payment by accident. A smarter decision is to use a credit card and pay it off immediately for a cash back amount.

​@@nestharusnot free if you have to pay it back

​@@ThatMetalAsian94 Maybe you live in a country that has no inflation ;). In the U.S. we get free $$ ^_^.

@@nestharus I'm a US citizen, even if you live in a different country, if you borrow money, you still gonna have to pay it back, whats free about that....

I would guess that most of what people purchase with this, if they had a month to think about it, they wouldn't buy it.

I don't empathize with someone like that at all. People keep getting in over their heads and I blame the borrowers, not the lenders. Penalties for defaulting should be very high to compensate for the risk.

Except for a house😂

Ah yes me who makes 1100$ a month is gonna wait 6 years if I save every penny I make to buy a car and not just getting a loan no different then when I need clothes ah let me wear the save shirt and pants 3 days in a row to wait till I can go buy. A few new shirts no I’ll pay over time so I don’t have to suffer yes to ppl who can afford thing is dumb but to some it’s extremely useful

@@nightfall4207 How about you stop whining, learn how to spell, and get some additional job training?

A kind of entrapment, if you will.

I hope when you get to my age you realize that prompt payment is the ONLY way. If you dont have the money you dont buy. And preferably paying in cash so you see your hard earned money going away to someones hands

People might call the loans "predatory", but the borrowers are the ones at fault, not the lenders.

​@@sexygeek8996true but people are stupid and need big brother to watch out for them.

They almost feel like the inverse of Payday loans

It still depends on the purchase. I wouldn’t buy my car on a one-time payment wouldn’t I? It’s practically impossible to do so unless you are a millionaire.

@@unhash631 True but credit card and now these BNPL loans are not used for cars but for everyday items.

If you are able to afford 4 scheduled payments over a time period of a few months, you are in fact able to afford an item equal to the total value of those payments.

​@@junelawson6708 I guess no one should buy a house then? I didn't know SNL was the be all end all for financial advice?

@@JamesLacher No, but Dave Ramsey is. He advises to avoid all debt. The borrower is slave to the lender. If you can't pay cash then you can't afford it.

he used to have trustworthy flanders vibes

Lol!!!!

Lmaoo I sung that in my head

Not sure as in other countries, but in DE we straight away make a standing order to our bank, that they automatically take credit card payment from our bank account, so we never have to remember to do it manually. Therefore, always paid on time, no fees. Of course you still need to have money to pay it off on your bank account ;)

The German customary way uses the credit card system infrastructure but basically works like a debit card (you don't pay it off, whatever you spent is automatically deducted from your Girokonto/regular bank account). However if there aren't sufficient funds you still go into the red (Dispokredit) and pay interest for that...

Yes, but they also offer you the temptation to make impulse purchases with them and spend money you probably should be saving.

@@scarpfish Fight that temptation and you have a great tool at your disposal.

@@zethcader6478 100%. Had scam charges on my CC, Chase removed them immediately and issued a new number and card. If you get scam charges on your debit, YOU gotta work to fight it while being out the money in the meantime.

I'd never heard of BNPL before (I don't live in the US) but where I live interest-free installment plans, which based on this video are basically the same as BNPL, are common. And I agree, the only reason to use it is if you already have the money to buy the item. They are a trap to trick people into buying something they can't really afford, lured by the zero interest promise

​@@exantiuse497 Yeah, they are the same thing. A 0% loan is great if you were going to pay for it in full so might as well break them up into smaller payments. The trap is to not spend the money that you only have because you didn't pay for it in full.

Use a rewards CC and get $ for statement balance. I net $50 every other month, about $300 free money per year.

I use BNPL loans but charge them to my credit cards and lines of credit where I get rewards like cash back on some of them. I try to use them responsibly by not spending more than I could possibly cover with savings or money set aside for purchases. To me, I see it as a way to stretch out when purchases are due since charging it to a credit card means the bi-weekly installments can cover different credit statements (so more time to pay it off) but also not eat up my line of credit all at once (like 0% Apr credit cards). I’ve never paid interest due to these loans and only carry a balance on cards if I won’t accrue interest. I think there’s a way to use them responsibly and I’d like to think that I do just that. However, I do agree that they are a very tempting marketing tool to get you to spend more money which I’m trying hard not to get sucked into for every little thing I want to buy

In my country we have interest-free installment plans for three months for a long time (major retail chains), bnpl is only use by 8% of the population.

Yup! It annoying to see my cohort like this. Seems everyone else has nicer things than me but I'm sure make less. I'm 28 and earning $112k+, no debt. Granted I do live below my means. Someone making 60k be driving a Tesla, luxury clothes, new phone, jewelery, etc. Living like they made my income haha

@@djm2189 I'm not quite at your income but yeah it is really weird when people who make less than you live a life of greater luxury than you merely because you're financially responsible and they're not. It really is a weird situation, like we've woken up in the matrix or something.

@@djm2189 This is not to say it wouldn't be nice to spend down every paycheck, but the reality is is there are just too many financial goals that we just have to have to get ahead. Want to retire? You have to invest for retirement, and a LOT for it. Want to not be vulnerable to a job loss or most other emergencies? You need to have an emergency fund. Want to avoid future debt? You need to save for large purchases in advance. There's no way out of financial goals if you care enough about them. Therefore, saving and investing a portion of money is always a must until you can check the boxes off some of those financial goals. People who live paycheck to paycheck or above their means baffle me. Because they live through life without having any of these seemingly non-negotiable financial goals even considered, let alone acted upon.

@@thoryan3057 yes, yes, and yes! You and I will definitely be financially ahead, even millionaires+! That mindset is what sets us apart. Don't get me wrong, I'd love to blow a bunch of it, but I know I shouldn't. For me higher income means I can nudge my lifestyle a bit up while still living below my means.

Its YOLO spenders who literally do not care about the future

The Netherlands 😍 hopefully I can live there one day

In Portugal is at 39.4% of the population that has credit cards, cash is still king, with debit cards in second.

That's dumb. If used properly (payments made on time and no increased spending), BNPL schemes can really benefit consumers. They can invest the money they would've spent on the product into the stock market, and then the money will grow. And then they can sell stocks to make the payments, and at the end of it all, they will have more money left over than they would've if they had paid upfront.

@@me-myself-i787 Bit of a stretch to call this dumb imo. You're assuming that people have the time, money expertise, and luck to make profitable short term investments that are worth it. In reality, people tend to use these schemes when thet don't have the money yet, and then spend too much simply because of how human nature works (getting things good, abstract concepts like future payments difficult). You can also just look at the companies offering these schemes to implement for other companies and their statistics. In the Netherlands, they earn money both from subscriptions, but also from fines and rent from people who pay too late, which is 20% of customers using this service. It's simply yet another scheme that makes vulnerable people more likely to get into debt.

​@me-myself-i787 They COULD but the problem is they don't and they won't because we aren't super computers. Human psychology just doesn't work like that. People will just use them to spend much more money than they otherwise, as studies have already shown

As a millennial, I've started to truly hate this. The worst thing is that more modern shows or movies sometimes don't even have a physical release anymore, or have a very limited release, so you HAVE to rely on streaming to watch them. But if they get removed from a streaming service... they're just gone. This happened with HBO recently where several shows have just been removed forever, and the creators are no longer getting paid, and their work isn't accessible anymore even for like, a portfolio. It's super gross. My roommate also is into less-well-known musical artists and his favorite songs disappear from Spotify ALL THE TIME, so he's leading the rest of the house into returning to physical media. I don't even own a CD or DVD player anymore, but I still have a small collection of CDs and DVDs, and I'm considering collecting more, just so that my favorite media will still EXIST in the future. I'm also that nerd that still prefers to buy physical copies of video games on the Switch. Like, yeah, it's a pain to have to insert the cartridge whenever I want to play something, but luckily the cartridges are tiny and easy to carry with the Switch, and I don't have to worry about long trips or whatever where I don't have internet access. The first time I tried to access a downloaded game and it didn't open because I couldn't connect to the internet thoroughly pissed me off, lol. In short, if I own something, I want to actually OWN it, you know?

I'll just say this. I haven't been to an in theatre movie since 2018, havent watched at at home movie since my DVD player flaked out and my latest gaming console is a PS2 which I haven't bothered to hook up since moving eight years ago. Also when I made that move, I cancelled my cable and replaced it with nothing, except an over the air antenna (which hardly gets used). No Netflix or other streaming services. I honestly don't miss any of it, and the culture of those industries turning their delivery models virtual and their revenue models towards subsriptions has played a role in that.

I think subscriptions are generally better value for money. You get tons of shows and movies for £120 per year, whereas before, the same amount of money could only get you 40 movies. And that's at the ridiculously cheap price most Pixar Blu-Rays sell for. Most movies are even more expensive. I will still buy Blu-Rays of my favourite movies.

Yup, they can help someone while screwing over x amount of people per person saved. They know this. Too many dumb people out there living above their means. Learn and avoid this. Be financially smart and you'll succeed way above the rest even though they might have nice things, usually cuz they don't own the.

Good on you for not being an idiot and living within your means!!! You don't know how bad we have it in the general population. It's becoming like the movie Idiocracy.

Very true, I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.

@Sandra Beckham I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?

Thank you for this tip. It was easy to find your coach online. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé

Sofia Erailda Sema is great! I invested my life savings plus $200,000 with her, using my home as collateral. I lost my life savings and am now homeless! Highly recommended!

Forgot about "risk"

@@LittleMopeHead If you're buying from a well-respected company with good customer service and you use a credit card as the funding source, there should be very little risk involved. If the product is crap, return it. If the BNPL company goes rogue, get your credit card company to intervene.

I did something similar for my BNPL back in 2020 I was able to buy an electric bike with it and pay off over the next 6 months but that saved me money, I didnt have the cash but saving would have limited my ability to buy it till winter eliminating the benefit

Naw, these purchases are way TOO SMALL to make any good interest. Thus so much more risk, your late and you get hit with a late payment to credit company. Anything other than a house or with considerations a car, should be bought with funds you have and after you have a 6 month emergency fund. That is a smart savvy shopper. People using these services are not smart and savvy lol

Adding another company that you need to get through to buy something means more profits that the consumer has to fork over. The consumer is paying for those increased profits one way or another

And this way the price is increased for EVERYONE, even to those who are not using BNPL.

This is good perspective. Thanks.

In all likelihood that is not the case because BNPL loans aren't ubiquitous like cards and BNPL often has customers buying more which offsets the cost already.

Thank you. It's your typical Jedi mind trick.

Not entirely true for all BNPL but close

10/10

It's kind of interesting that a lot of people think that just deleting the app get rid of the loan. it doesn't, but at the same time, the small size of the loan and lack of clearly defined collateral makes them really hard and not cost effective to collect. So while these people will take a significant hit on their credit report, the companies do end up taking a loss in most such cases. Not exactly a good thing as the consumer still get screwed. But at the same time, it's funny that financial illiteracy might actually bite the financial companies in the behind for once.

Cars are one of the exceptions to BNPL, a car and a house are basically the two things that are fine to finance though I wish we didn't build our cities where owning a car is necesary.

What if they didn’t allow it? Would it be better to let them go hungry?

@@TumblinWeeds agree there the main point of the comment was that they are creating a bad situation because it's effectively inflated spending since they are buying dinners out which generally cost more than groceries. it's more about the economic situation in Colombia leading to that situation which is mega depressing. If everyone would spend responsibly I would think it'd be great to have a payment plan for food but since most people make poor financial decisions you end up pressing down on the poor further over burgers and fries.

This is 100% accurate with the price of cars. It is now assumed that, when you buy a car, you're going to put less than 10k down and want a 72+ month term. This allows the buyer to "afford" more expensive cars, so base models are going up in price dramatically. Compound that with safety and efficiency regulations, and new cars are entirely out of reach for financially savvy people in middle or lower incomes.

@@ewicky yes. The status quo becomes making bad financial decisions and everyone who doesn’t want to participate in the status quo of keeping the average American broke struggles to find things that were accessible before the adoption of these things. Not to mention that these programs create a bigger gap between the rich and the middle class.

@@razojacqueline I currently drive a 15 year old car, and intend to for the foreseeable future. I make good money and even put 20% down on my home. But the type of car I would want would cost $60k+ new, plus tabs plus insurance, and I just cannot justify spending that much.

@@ewicky yeah, if the average person buys the average car they would be hurting themselves finally for decades.

Totally agree! I also see people vastly overspending not just on the item itself, but on the credit too. When it comes to PCP finance on a vehicle there are so many people that don't really care about the interest rate or the total cost of the loan; all they care about is whether or not the monthly payment is low enough. This leads to finance companies being able to charge as much as 20% interest but, by keeping the final balloon payment large they can keep the monthly payments low during the fixed term and the buyer is successfully enticed and the lender makes a ton of money! The average person just doesn't seem to get it...

yeah totally not pbs quality now

Definitely. Just like credit cards, they are just a tool that can be beneficial in certain circumstances if used wisely. They're mostly only bad for the financially irresponsible

That's how it works with credit cards too. The thing is, a lot of businesses dont take BNPL.

While I wish that we in North America didn't build cities where cars are required, buying a car is one of the two exceptions for buying something you don't have the money for upfront. A house is the other one in my opinion.

@@ambiarock590 Not true. If anything, you should always buy your car with either money saved up or twice the money for it or the very least, don't lease a car. Based on accounting, a car is a depreciating asset, no amount of money you put in your car is going to give it more value over the years (some supercars may be an exception). But buying a house is an asset, and you can finance that instead of saving money for it.

And only works with expensive things. Interest isn't much on $100 over 6 months.

@@smoothbraindetainer The interest you might earn by using a BNPL loan and setting aside the rest of the money in such an account is so little it is not worth the time and effort to do so and definitely doesn't outweigh the late fees you'd incur if you forget to pay the loan on time. With very few exceptions don't buy something you do not have the money upfront for

Also, i don't accept credit cards for my business, only debit or cash (which includes swish here in sweden) if in person

no he can't it totally ruins his creditability

Because the innovation is a calculated way for corporations to make more money. And that money has to come from somewhere.

I would always stick with paying off the card completely at the end of the money, otherwise any benefits you gain from it aren't worth it.

It sounds really concerning to me that at any point you wouldn't have the money to pay off credit bills. This likely means that you don't have emergency savings nor have been budgeting appropriately. You should find out before the month starts how much you can spend, not after the month is over. If you can't consistently pay it off, I would say switch to using cash. A credit card reward is max 4%, likely induces you to spend more, and interest rate in the 20s. Being behind in payments is a pretty scary thing.

What I did during school (just graduated a year ago) is that I would budget a year ahead, so I take the time off to work vs take more classes to make sure I can afford the upcoming year's expenses while graduating as quickly as possible. I managed to cash flow all of university, but it required tremendous amount of planning. You should know a year ahead of time that there will be around x amount of expenses at the start of a semester, this way you don't fall into a debt trap.

Omg 3 cards are still 3 cards too many. I have ZERO credit cards for 15 years and am so happy. When I need to buy something is BAM cash on the table

I have a rewards CC that I run everything through and pay off DAILY. Every morning, I log into my account and pay off whatever the balance is. I've gotten TONS of cash-back rewards and never paid a PENNY of interest.

midlife crisis

@@jmwloup5110 lol, I thought the same thing!