How Phantom Debt Is Haunting American Consumers

[@msoldate]

Finance people are pure artists of “How do we make money from people who don’t have money”

[@NatashaEstrada]

Notice how the people complaining the loudest about this is the traditional banks. Because the reality is BNPL cuts in to the sub sub sub prime credit card market. K'know those trash card with 35% interest and $100 annual fees. This is the type of consumer BNPL taps into. They don't allow people to have huge limits straight away but the cost of financing is far more reasonable. I've seen it used pretty responsibly too. Workers buying quality workboots that will last them rather than buying the cheapest they could afford with a single paycheck.

[@jbalien20]

The entire credit system has ruined our economy. Ppl complain that we are printing too much money, In my opinion, that's false. It's the whole loan system that is inflating the prices. That's what's ruining our economy.

[@111alexg]

​@NatashaEstrada spot on. The entire time they were talking about it. This is what I was thinking. Aka credit cards are allowed to screw you over with bank banks but not BMPL. Haha they cutting the middle man taking their profits regulations coming indeed.

[@bobmanlarrydude]

Suckered will be suckered. Financial literacy ain't a joke, BNPL preys upon the financially illiterate, same way traditional institutions do.

[@g.t.richardson6311]

@@NatashaEstrada that is a good use of this type of credit good point ! I suspect that those type of purchases are the rarity, and many more of them are people buying five pairs of shoes and fancy handbags, and four more outfits they don’t need I retired from my real job at age 60 I’m 63 now and run a small painting and property maintenance business basically for two clients who own a lot of properties I’m glad Most of the year I only need bum work pants and work shirts! In the summer couple times a week, I’ll wear nice shorts and a nice And my wife and I will go out to dinner at one of our decent local establishments no chains for us

[@henryptung]

Why do I feel like this video is less about consumers complaining about BNPL, and more about banks/Wall Street complaining about others cutting into their exclusivity in the debt/transaction market and how they can't pressure more vulnerable people with worse loans (due to lower credit score)?

[@ericabrerav]

🎯🎯🎯

[@MF-zj3zl]

Exactly! Why do you think the BNPL report and most of the people talking are from Wells Fargo? 🤔

[@fearlessreview]

Wells Fargo, the people responsible for making fake bank accounts for customers, gasp

[@CCK1972]

because it is

[@MiguelMartinez-ke3op]

Exactly like I don't see an issue with people using BNPL since it doesn't use traditional credit checks

[@tm7517]

The title of this is misleading. The real title is phantom debt haunts banks and lenders because they are worried about not getting an accurate picture of household debt. Why do we as consumers care about that?

[@arh1234]

People are getting caught in cycles, like with stacking subscriptions, with multiple BNPLs automatically hitting their credit cards.

[@mithicash1444]

Because institutions would lend to people who can't afford it. If enough people default on their loans bank close which could hurt you and me and the broader economy for that matter. There is a cascading effect

[@jerryanyu8467]

​@@arh1234 You can do all of the same with the credit card. AFAIK BNPLs are tougher to approve than credit card, and don't charge late fees. A big step better than CCs already.

[@Zwiqy45]

​@@mithicash1444 Maybe they should stop scare tactics and focus more on increasing income to match inflation or ways to lower rent so people can afford to not use BNPL.

[@Joce123]

​@@arh1234bmpl??

[@OneManOnFire]

The biggest flex is owing $0 on all credit cards.

[@lv1543]

You should buy something rn tbh

[@kb9826]

@@lv1543 Just to be buying something? Sounds like he's responsible and has discipline which is the exact way one should handle spending and credit cards, debt in general.

[@lv1543]

@@kb9826 no he sounds like a dork who needs to lighten up. He will never be rich just spend everything and max out your credit cards

[@OneManOnFire]

@@lv1543 I still buy pointless stuff online but pay it off asap

[@Radagast49230]

It's a good start. But real freedom is having $0 debt at all. My home may be a singlewide in the woods but it's paid off, my truck may be 20 years old but I don't owe any money on it and I can do the repairs myself. I don't buy things I can't pay for in full on the spot. Took me almost a decade of scrimping and hard work, but knowing that the chain of debt is off your neck is profoundly freeing.

[@zhpregistrynet]

All of sudden we care about debt? Nope... this is banks feeling left out since they want to be the ones giving the very same loan. .. oh the heartfelt narrative behind is so convincing.

[@adammarette2491]

There is some truth to this. However you can't go into a bank and get a loan for 2500$ worth of groceries and clothes. Least not easily

[@Nonsense116]

Holy cow the ignorance in this comment section is wild. I'm a skeptical person too. But please tell me how on earth banks are profiting from BNPL being required to report their data to the credit bureaus just like every other institution that offers credit?

[@zhpregistrynet]

@@adammarette2491 Yes you can! it is called a (bank issued) credit card. And that's precisely where the business is lost and so there is a fake group is created to pretend that they care about consumers.

[@zhpregistrynet]

@@Nonsense116 That is not what I said

[@StvBnsn]

@@Nonsense116Yes credit scores and banks have never been tools of oppression used against minorities and the poor right? Maybe banks should be focusing on lowering the percentage of society that is unbanked before they get annoyed about buy now pay later.

[@novakaine127]

I think this skirts the real problem... The fact that Americans need to take out a loan to buy necessities.

[@zehman11]

These aren’t necessities on these plans.

[@PokemonHolo]

It's not being used for necessities. Just like Creditcard which BNPL is, people use it for stupid stuff including fast food.

[@omarmks6670]

​@@PokemonHolo ok but how is fast food stupid? Food is a necessity that everybody needs. I just finished eating my fast food meal Just as a quick fyi. I eat this same meal every time I finish my workout. My only debt is car payments

[@PokemonHolo]

@@omarmks6670 Fastfood is not a necessities it's a want. It's more expensive and if someone is broke or doesn't have allot of money at the end of the month it's something they shouldn't be spending money on. People in poor financial situations who are using Creditcards and BNPL are paying 20-30% interest rates to fund fast food meals.

[@Rastaferrari829]

@@PokemonHoloyes they are. You can use these for rent payments, and bills. Maybe you should look into it 😂

[@kenmore01]

Halloween must be coming. First I saw a thing about zombie mortgages this morning, now phantom debt.

[@otrebla8944]

😂

[@RayRayWasAGoodBoy]

It’s Halloween everyday right now

[@ericolens3]

Christmas in July Halloween in June

[@saleens330]

Well it started out being name Bidenomics and just keeps changing…

[@Orlando_Steve]

Next up: vampire credit cards and werewolf auto loans

[@JacobPaula]

The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.

[@Fred-w7t]

I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years

[@WillFred-g7g]

Do you mind sharing info on the adviser who assisted you?

[@Fred-w7t]

Her name is “Jessica Lee Horst ” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@Theodore-l2j]

Thanks, i did a quick web search and i found Jessica, i hope she responds to my mail.

[@dicktracy5234]

The world is made of BUYERS & SELLERS . Which are you ?

[@williamho7393]

The things you own end up owning you.

[@denz4133]

I liked Fight Club too.

[@shiftymcgee9359]

@@denz4133haha, beat me to it.

[@Frogboyx1gaming]

The only reason this is an issue is because credit card issuers are losing that Sweet interest money.

[@noonierune6933]

Yep

[@Frogboyx1gaming]

@noonierune6933 I use afterpay all the time for purchases for my studio no credit checks no stupid interest no questions. I literally cut up all my credit cards when I found afterpay. I think everyone should switch from credit cards over to buy now pay later. Honestly it's made me a lot more cautious about how I spend my money. Before I would just max out my cards and spend years paying it back at minimum payments. Now I pay 4 simple payments, and it's done. Most I have done in 1 transaction is 800 bucks.

[@demarcomendes]

🎯

[@frantzdumosthene6729]

Booommmm

[@AdityaEnergySolutions]

That's not how this works

[@MegaThucydides]

So, phantom debt = banks NEED to be able to track that debt through credit reports. Gotcha

[@233kosta]

Government says banks are _required_ to make sure debt they issue is affordable. That pretty much gives them carte blanche to be as creepy as they want to be. It also provides them with the tools to gouge people they consider "high risk". Of course the alternative is they flat out refuse to lend to those people. Maybe that would be for the better in a lot of cases.

[@themacker894]

Your researcher seems to have missed the fact that Layaway meant you didn't pick up the item until it was paid in full.

[@nicholass3628]

Summary: all of the experts in the video are upset that the credit reporting agencies don't have more of your personal information to sell to lenders . LOL

[@rachelesmith3342]

Yeah it sounds like big banks and lenders are trying to get us worked up about BNPL so they can get more profits 😂 they’re mad that they lost a customer to BNPL when they used to be able to rely on giving them their credit card or loan for a 30 percent interest 😂

[@AK88.]

Notice they rarely ever cared about getting your rent and utility payments reported because their only goal is to keep you with a low score to pay higher rates. That's what they get for making it damage your credit when they did report it, they did this to themselves!

[@LauraVee63]

EXACTLY!!!! Just left a comment that echoes yours! More and more people are understanding how greed is killing our country.

[@ericabrerav]

Sounds like traditional financial institutions are concerned with consumers not using credit cards to pay for products and then cash in on interest or late fees. People that are well off don't need to spread their payments over time, so the real money comes with people who cant clear their balance in full each month. Also Credit Bureau's caring more about me paying off some random product that I purchased once vs my montly rent is silly 😂 Don't be fooled, this is more about protecting credit card companies than consumers.

[@tsaysfilms]

i agree with you. have been using all of those major services for years now and not a single issue so far. also the returns/refunds process is as straightforward as with any other 'traditional' service, if not simpler. i also felt like the big players like banks and the good ole american credit system are just being disturbed by the fact that now not all the money are going their way.

[@CameronFussner]

Since Biden took office, there seem to have been more unfavorable results in America. I don’t know how but you’ve managed to package an unbiased analysis that is more entertaining than the sensationalized segment of economic and financial news. Thank you for your efforts to be the signal and not the noise. I understand that the economy is currently in a downturn and that we must wait for things to get better

[@fadhshf]

As hard as it may sound you can plan for the recession. If you are working, find extra work and get an Invest--advisor. Protect your deposits by having enough cash in short term fixed income. Then cut your expenses. Minimal insurance, cut utilities.

[@leojack9090]

I think the current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.

[@hasede-lg9hj]

In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.

[@lowcostfresh2266]

@@hasede-lg9hj my partner’s been considering going the same route, could you share more info please on the advisor that guides you.

[@lowcostfresh2266]

my partner’s been considering going the same route, could you share more info please on the advisor that guides you.

[@TruittONeal]

CORRECTION: I believe they are misusing the term "layaway" in this story. Layaway refers to an arrangement where a customer requests a retailer to hold an item or items for a predetermined amount of time until the full purchase price is paid. Typically, the customer pays a deposit and makes scheduled payments over time. Once the total cost is paid, the customer receives the item. If the customer does not complete the payments, they forfeit the deposit used to hold the item. This piece misleads viewers into thinking that layaway allows a consumer to take the item/items before fully paying for them. (4:12)

[@palillo2006]

I can tell this is a hit piece from the banks because they are losing a lot due to these pay now, pay later companies. They want the profits for themselves!

[@AaronDotZone]

Yep! All the experts were from wells fargo

[@Nonsense116]

Did you watch the video? Tell me how would these banks profit from.... Let me check.... having BNPL report data to credit bureaus????

[@rachelesmith3342]

They would benefit by going on an anti BNPL campaign because ideally the customers using BNPL would drift back towards getting banking products like loans or credit cards to cover the costs instead. They don’t care about people being in debt in and of itself, they care that those being are in debt with them because they can cash in on interest. Usually the customers who use BNPL are already economically vulnerable or don’t have great credit history and if banks were already to have these customers, they could charge them interest and fees out the ass and justify it by pulling up their credit score or lack thereof. It’s all a business. They make profits from people being indebted to them

[@palillo2006]

@@rachelesmith3342 Well said. This is exactly why I wrote my comment. You just explained it so well!

[@truefranck]

I like BNPL, bcuz most of the time u are on installment payments for like 6 months to a year with zero to 5% fees compared to bank loans or credit cards that have a huge interest within a month.

[@wafflesaurus_supreme]

If you're responsible, it's a very attractive option. Your card balance (if you're carrying one) doesn't take a big hit, the payments are usually on an autopay schedule, and there's 0% interest if you pay within the designated window.

[@mithicash1444]

The 0 interest is rather rare. Most have interest automatically calculated into the monthly payments. Some do offer no interest, but those are rare and usually for specific items

[@redneckhippiefreak]

lol If one is "Responsible'', One does not need credit. 8/

[@the_investor9836]

Zero interest but isnt there a fee? Lol

[@NatashaEstrada]

@@mithicash1444 Most of the items I've purchased with these services have 0% interest but are all paid within 6 weeks. The price of the item is the same regardless of the method. It would be literally illegal to calculate interest into the monthly payments while also stating it's interest free. Where BNPL works really well is for clothing purchases where you might need to order multiple sizes to find the right fit. Clothing retailers are notoriously bad when it comes to processing returns and refunds in a timely manner. With a service like Klarna if you tell them your returning something they'll pause your payments until it's processed.

[@Blades2147]

@@the_investor9836 Nope, many are 0 apr and no fee for 4 payments every two weeks.

[@Vivienedouglass]

My dividend journey began when I realized that two particular expenses in my budget were always going to go up and never go down. The two expenses were taxes and insurance. I realized that the dramatic rise in both will need some added income. So, I started buying shares paying dividends. I can now see that this will be the path I need to take to make sure those two expenses will not overtake my future income.

[@AmithKaury]

As a beginner, educate yourself, Learn the basics of investing and the stock market. There are many resources available online, including books, articles, and online courses. It’s a good idea to diversify your portfolio across different stocks and sectors to minimize risk. I’ve heard of people accruing over $550k during recessions and inflation, its important to do your own research.

[@frankedwardark]

How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.

[@MickyGlover]

I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance advisors you could check out. We have been working with ’MICHELE KATHERINE SINGH , and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.

[@kurtKking]

...I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance advisors you could check out. We have been working with ’MICHELE KATHERINE SINGH , and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.

[@frankedwardark]

Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks

[@lueker31]

I've been using these for 4 years.. In all honesty it's easier to maintain than a traditional credit line. The 4 spread out payments are more simplified than a large single payment. I do gig work full time.. so having that flexibility is helpful.

[@nimo4335]

Inflation and the real debt total is understated.

[@hotbluflame2933]

Uh huh. Let me tell you what I heard… There is a well-regulated system for optimizing loan structures by making sure economically-disadvantaged consumers stay dependent on the system so they are forced to continue making interest payments. But now, there is another system these consumers can use that does not impact their credit score (i.e. the tool being used to keep them in a cycle of high interest payments), and they are using it to purchase things that they would normally purchase using the high interest system. So now, the people who make money off the high-interest system are trying to force regulations on the no-interest system under the guise of consumer protection (i.e. We’re just looking out for your best interest. We don’t want you to drown in debt). That argument would fly if the high-interest system didn’t maximize debt for consumers. But Newsflash: people who are using Buy-Now-Pay-Later loans are already drowning in debt. They just aren’t trying to tread water with a weighted vest on like they are in the traditional credit rating system. If you’re upset that people have found a loophole to your very lucrative system of keeping people in enough debt to generate profits for the wealthy, just say that.

[@NatashaEstrada]

Yeah I heard that too. They aren't going to get ppl to accept their $300 limit with a $125/yr annual fee and 30% interest credit cards anymore. They are looking to Europe and seeing young people not even using credit cards at all and it worries them

[@jasmineclayton4313]

You nailed this one!!!

[@c.wilson3931]

This. Exactly.

[@walter2695]

Yup! Screw em. I rather pay for a 400 purchase in 4 100 dollar payments than giving the credit card company a chance at getting me to pay them 20 percent or even more in interest.

[@Nonsense116]

No that's not what they said at all. The whole video is all about the loans aren't reported so economists have a murky view on the true health of the economics of America. Also loan structures don't force anyone to do anything. People choose to sign on the dotted line. In the age of the internet people are choosing to be uneducated on the loans they sign up form. These "people" you say that are forcing regulation on BNPL aren't force an interest system. They are forcing them to report data to agencies. They aren't profiting. Don't get me wrong I'm a pretty skeptical person, but not everything is some conspiracy theory. Trust me, we DO NOT want unregulated lending. It's how 2008 happened. Your comments makes me wonder how much education you have in finance. If you are uneducated on a topic, that's ok, I was too at one point. But when I was uneducated, I made sure to keep my thoughts to myself.

[@CatWhiskering]

Something that I noticed about 100% of the poor people homes I used to go into when I was volunteering with a charity: always ALWAYS an enormous TV. Always a clutter of cheap, useless stuff like throw pillows, stuffed animals, resin statues of sparkly unicorns, lava lamps, "collectible" Barbies still in boxes, ticky-tacky stuff like that. So when they tell you this phantom debt affects "the most vulnerable," they're right. It's affecting the people most vulnerable to marketing ploys to buy tacky sh×× they don't need. It's affecting the dumb people, in other words. Don't be dumb, control your impulses, don't buy stuff that has no lasting purpose, and live within your means, and you won't be vulnerable.

[@sophiavega1777]

don't buy stuff that has no lasting purpose.....💯💯💯Agree

[@jamesbillingsby8043]

Some rich dude "I have billions and never have to worry about money for the next 1,000 years. But i want more and to get it i must take from the poor" truly a psychopathic mindset.

[@jerryanyu8467]

This whole 'phantom debt' issue with BNPL is way overblown. The $2 trillion revolving debt from credit cards is a way bigger problem than something that's 1/1000th of the size. Affirm doesn’t even charge late fees, so there's no revolving debt problem like with credit cards. And seriously, if people couldn’t pay back, why are there so many BNPL companies making money, even without late fees?

[@aka_pierre]

Yes, this!! This isn't even a new thing! Layaways and rent a center were way more problematic!

[@NatashaEstrada]

@@aka_pierre Yeah and in the 80's it wasn't uncommon to pay for things with post-dated checks. QVC basically invented this version of it too because for mail order there is a lag between ordering and getting it so biweekly payments made sense.

[@chcknball185]

The problem is that interest is accrued and charged if the full balance is not paid by the end of the loan.

[@Radagast49230]

The thing is the Banks are the ones loaning money to the BNPL companies, and they're getting very nervous about being repaid because quite a few of them are reporting very concerning rates of failure to pay, while others are clearly cooking their books. So the banks are afraid the BNPL companies are going to go bankrupt and leave them with huge losses on their loan books.

[@jerryanyu8467]

@@chcknball185 This is the case for credit cards, but not for BNPLs like Affirm. They never charge late fees if you have the entire comment lol

[@MaxVids1]

I like the Buy Now Pay Later option. Having 0% APR for a couple hundred dollar purchase is fantastic. They key I found out is to not have more than one BNPL purchase at a time. It's very easy to get in trouble.

[@InternetUser._]

You get 0% on a cc purchase for 30 days if you pay your statement balance…. If you can’t do that… you shouldn’t be buying it.

[@greateats6905]

​@@InternetUser._ majority of bnpl are set up for ever other week so ever 15 days up to 2 months so that's why people the take it up

[@vivisvibrant]

My thoughts exactly! I have used BNPL for purchases that I have the money for, but just don't want to spend all of it in one lump sum. As you mentioned, I think the danger is having multiple BNPL AND not having the money/a realistic plan to pay the loan off.

[@TheNetflixNook]

Agreed. Just like with most things you have to know your limits and where to put a hard stop. Don’t let FOMO rule your life. Not worth it in the end.

[@iii___iii]

​@@InternetUser._ like with PayPal?

[@Aarrenrhonda3]

I'm not sure how you've packaged an objective analysis that is more entertaining than the sensationalised section of economic and financial news, but since Biden took office, there seem to have been more negative outcomes in America. Thank you for your efforts to be the signal and not the noise. I realise that the economy is currently experiencing a downturn and that we must wait for things to improve.

[@Peterl4290]

As hard as it may sound you can plan for the recession. If you are working, find extra work and get an Invest--advisor. Protect your deposits by having enough cash in short term fixed income. Then cut your expenses. Minimal insurance, cut utilities.

[@larrypaul-cw9nk]

Although you need to be an experienced practitioner to carry out such a strategy, I believe that the current market may present prospects to maximise profit in the near future.

[@Mrshuster]

Investments were, in my opinion, far easier to make in the 1960s than they are now. Professionals are the ones that consistently make profits these days, which is why I have been hiring an advisor for the past five years to steadily increase my portfolio in anticipation of retirement.

[@sabastinenoah]

How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?

[@Mrshuster]

Annette Christine Conte'' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@bremblepate-oc2vc]

If a company tells you something, the one thing you can be 100% sure about is that at least something, if not everything, about it is a lie.

[@djaftermath4313]

This was call Lay-A-Way back in the day. The big difference was there was NO interest. It was usually something l$125 bucks or less. I did it when I bought a pair of Jordan 5s in 1990.

[@arh1234]

Possibly the bigger difference is that with layaway, you didn't get the stuff until you paid in full.

[@djaftermath4313]

@@arh1234 Very fair point. Actually its a huge one that I missed like a goof. Thanks for pointing that out!

[@MaxVids1]

Most of the buy now pay later methods don't charge interest. They are broken into 4 payments 0% APR.

[@JULYXXIV]

I miss those days!

[@NatashaEstrada]

@@arh1234Sometimes you did though. It wasn't uncommon for appliances to be a buy here pay here type of situation where you got to take it home first and come back for payments but wasn't formal financing. Or as I'd see my parents do they'd pay with post dated checks. Meaning they'd leave 3-4 checks totalling up to the full cost of the item with the agreement the store would deposit them a month apart, This really isn't anything new expect for the fact that it's centralized with one or two services.

[@autumnislovely]

The only “buy now pay later” debt I’d ever incur is for medical expenses. Why seeing a dermatologist once costs over $200 for an insured person is a mystery to me. Sure, I have a high deductible, but why is it still that expensive for an “in-network” provider?? 🙃

[@Meerkat17]

I took an x-ray and they quoted me $150 with my insurance. I asked how much it would be for a cash patient. They said $60. .....Naturally, I just paid as a cash patient and didn't use my insurance. Yeah not sure why it works that way. 🙄

[@wolfpackflt670]

@@Meerkat17 Scamming the insurance so the insurance screws you.

[@baotruong248]

Right?? My 5 minute follow up video appointment with my PCP was $150... Luckily, I have an HSA so I can put everything on that card but I know more people who don't have one or don't qualify for one.

[@Steven-xf8mz]

@@Meerkat17 When paying cash (and if it is truly $60 for an x-ray), you're not meeting deductible and stuff. insurance can deny follow-up care because you don't have an x-ray on record, therefore, you might have to do another x-ray. The better question is why the provider you're going to willing to charge $60 for cash, but only willing to settle for $150 with insurance.

[@Steven-xf8mz]

You have a high deductible plan, that's why. A part of High Deductible plan is a HSA eligible plan which law requires no coverage until a minimum deductible is met. It's Gov't regulation, also modeled after historical data. if you are paying less, you would be seeing a higher premium. As insurance goes, there are generally 2 groups of people. group A: I'm paying too much for insurance while not using it at all. Group B: I'm paying too much for care even though I have insurance. Insurance model are cost modeled somewhere between A and B, they make about the same amount of money regardless which way they shift toward to... the more group B pays, the less group A complains. the less Group B pays, the more group A pays and complains. just how money works.

[@christians131]

I remember a guy telling me he always carried a balance on his credit card of like $5k because “it helped build his credit score” and he said he was fine with paying a little under $100/mo for that. Many Americans seem to genuinely hate having money. The US makes record profits just by doing everything to avoid teaching financial literacy

[@Ella-g2m]

Oh damn he's dumb. He's the worst kind of dumb, too, the kind that thinks they're smart.

[@antilogism]

That's really strange. There's an ideal "revolving utilization" for a credit card score of, from what I can tell, 2.5% ±2. Assuming he's right with his math he probably has a mid 6 figure credit line. Odd thing is that we are always running about 3% with no static ballance. I can't see paying $1,000/yr ($1,200 less maybe $200 from the 1099 INT gains) just to nail the sweet spot.

[@jiamiekori6575]

Everything has a cool name these days “Phantom Debt”. It sounds so cool

[@kenmore01]

There must be a whole industry making up these names 😄 Now go watch the one about zombie mortgages.

[@fear0]

Is "ghost credit" a thing? If not then I want some

[@ulrichleukam1068]

Phantom pain due to phantom dept

[@ericolens3]

oooooOOOOOooooo 👻

[@Orlando_Steve]

Like quiet quitting and other dumb things these internet content makers just invent.

[@tomsam1314]

I feel this is only a problem for big banks because they're making less on credit card interest. As a consumer, I'm going to pick the interest-free option that makes sure it's paid off within 3 months. I'm not going to stick it on an expensive credit card that get stuck on there for months/years at a time.

[@kortyEdna825]

Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.

[@PatrickFitzgerald-cx6io]

Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.

[@brucemichelle5689.]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.

[@Justinmeyer1000]

I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

[@brucemichelle5689.]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@Justinmeyer1000]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@flipkoofx1137]

To put it simply because big banks are losing business with these buy now pay later loans, it is now a problem. Correct??

[@g.t.richardson6311]

No, because people are not paying and continue to accrue more phantom debt, which is just a fancy word for debt

[@flipkoofx1137]

@@g.t.richardson6311 well with or without these buy now pay later loans people will still acrue debt and clearly big babks want these debts for interest, and if they get enough default they can ask for a bailout. So again this is just big banks crying that they are losing their share

[@korigocrazy2262]

@@g.t.richardson6311in the video they said less than 2% are defaulted though.

[@korigocrazy2262]

@@g.t.richardson6311 its a new industry that’s booming and other companies are gonna start jump On to get a piece of the pie.

[@g.t.richardson6311]

@@korigocrazy2262 2% isn’t that bad I missed that

[@chiimumango3979]

So that's the "Phantom tax" the kids are rambling all about

[@Joshpods]

Bruh 🥶 😂😂

[@rawlvee]

Exactly

[@RahStarFari]

Fanum

[@nraexox2599]

not at all 😂

[@Adanjakub]

fanum :D :D

[@paillette2010]

4:25 in lay away you did not pick up the item until you paid it off. My mom used to use layaway.

[@waynemangiardi734]

stop spending on GARBAGE that you DON'T NEED!!!!!!!

[@JakeStewart1343]

You don't like keeping up with the Joneses? 🤔

[@chamberlain85]

This is absolutely terrifying. Credit brokers cant know 100% of my extended credit if a phantom were to run amuck.

[@jondoe406]

Off the books debt! The horror!

[@immcguyver07]

We need a new word for this. Phantom debt historically meant bill collectors making bad faith collection calls on debt that they knew was past the statute of limitations. This is confusing to name 2 concepts the same thing.

[@seaneendelong8065]

And that type was exactly what I expected to get info about. Smh at these supposed experienced financial talking heads somehow not knowing this term is for a long running problem child in the consumer finance arena. 😑🤦

[@PleasantRevolt]

This is a massive problem, I can’t tell you how many women my age (early 30/s) are using these platforms and then get overwhelmed by BNPL on multiple items.

[@FromMikaWithLove]

I’m in the same age bracket and I agree!

[@ellens2454]

same thing with gen z, everyone is using it, along with accumulating credit card debt as well

[@moonfiend9259]

I've used them before but not anymore. I'm personally working on rebuilding my credit though. Even if I wanted to get one of these loans they wouldn't accept me anyway.

[@PatriciainOz]

Because Credit analysts and agencies are so transparent about their policies and the 3 credit score keepers are so honest about their algorithim and will allow people to grow credit ...its a corrupt system all around. I can't get a job bc of my credit issues or a place to rent because the big 3 say I have bad credit because they don't see that inflated fed rate impact on the credit card is not my doing (22% interest rate became 29% when fed rate went up).

[@PatriciainOz]

@DavidGreg-mc2lv I sincerely doubt higher power is something to help one's credit ...you know Big Bang and all

[@Ella-g2m]

Haha remember when a certain credit rating agency leaked all of our personal info to a hacker and we got a $5 payout? 🤪

[@PatriciainOz]

@@Ella-g2m exactly!!

[@fredanderson7728]

My definition of phantom debt has nothing to do with buy now, pay later. I define phantom debt as government spending that is unaccounted for, whether it's on a local, state, or federal level.

[@leviandhiro3596]

Buy now pay later means your economy is hurting

[@chrishaddad5362]

No it doesn’t, it means people are buying things they don’t need or can’t afford.

[@dbased1915]

@@chrishaddad5362 Both can be true. People do spend unnecessarily and take on absurd debt, but also the economy and inflationary pressures are crushing the lower class who don't own assets while the rich with assets have never been better off.

[@AnotherMartinez]

Disagree - you can keep your money paying you returns while you are making small payments for big ticket items

[@BTrain-is8ch]

@@dbased1915 I've never seen an Afterpay option at a gas station or at a grocery store. This is people buying garbage they don't need. Not everything is a class battle. Most things are just people behaving foolishly.

[@MG-Alexandrovich]

@@BTrain-is8chnow they have a card, which is essentially cc, you input any store you want and apply. It gets approved in seconds and you hood to pay

[@MissJen-78]

Layaway but the product is provided immediately? No waiting until the full bill is paid. 🤔

[@NatashaEstrada]

Layaway is a big cost for the retailer in having to hold inventory and take payments etc.

[@Orlando_Steve]

@@NatashaEstrada Yes. I worked in a layaway department once at a clothing store. People would put $300 ($900 in today's dollars) of new clothes that we just got in for the season and cancel most of it before the layaway period expired, maybe buying $20 or $30 of it. By then it was out of season and needed to be marked down.

[@limpnjen]

They don't know what layaway is. You don't get the item until it's paid.

[@TechnoArtful-tk2yh]

This is a very smart option for people that understand that right now money is worth less in the future than right now - invest what you didnt pay in full on. Of course, this is not at all who they are hoping use this ... its those that will default and get fees. But you CAN benefit from this if you are responsible.

[@Emmanuel-ne3oi]

You get it

[@rustykatt3870]

The lady who was working from the front door's hallway is smart. People who don't buy a bigger home (more $$$) to have another bedroom to conduct business have saved the money. Good luck to us all! 😊

[@oroville12345]

No One makes you buy crap you don't need. Be an adult be responsible.

[@Noonien96-nx6yj]

I used to handle returns ar KMart, which was linked to the layaway department. I remember when a layaway item had to go back on the shelf, sometimes the person who originally requested the layaway would get super stressed that the item went back on the shelf, and then become super releived that the item was still available. I could tell that the customer had somehow been fooled into perceiving not-real scarcity. People need to struggle against their scarcity mentality, if we want to get a leg up against corporate dominance.

[@James-nv1wf]

I'm too embarrassed to select that option, rather not buy it if I can't pay on the spot.

[@hs1296]

People in North America need to learn how to spend what they truly have - to not spend availing any type of credit. Shocks me how people here in Canada and the US talk about affordability - they mean being able to 'afford' payments on debt, and being able to qualify for debt. There is simply no savings culture. And wages are incredibly low for the livings costs. And everyone seems to be bought in to the concept of 'credit scores' which really ought to be laughed at. Shocking!

[@Apprendrel-eton]

i'm stunned too. they live beyond their mean!

[@ADobbin1]

You cant buy a car or house without a credit score. Unless of course you are a millionaire and can hand over a 600k dollar cheque. No normal people can do that.

[@hs1296]

@@ADobbin1 That is the point. The system should ensure that folks have enough money with which to afford a home / vehicle. Not a loan. The credit score should aim at reflecting an individual’s liquidity/wealth; Instead of the person’s ability to ‘afford’ a loan.

[@ADobbin1]

@@hs1296 It does reflect liquidity and wealth. It is based on how big a loan your income can support and whether or not and how often you have missed payments in the past.

[@hs1296]

@@ADobbin1 lol 😂 nice

[@Trentacus]

I did it once a few years ago when buying a rare book. Three monthly payments with no interest was nice. But I can see how some can get trapped in it like a payday loan.

[@joeaaronsen]

The only thing better than these videos from CNBC is watching the stock video clips they use for filler.

[@regu6582]

Careful Jon, you are showing your economics and financial ignorance,

[@evangoztrah3575]

The interviews that look like employees trapped in the storage room add to the credibility

[@this_epic_name]

Read: credit issuers are mad they can't accurately assess peoples' creditworthiness. It also threatens the viability/usability/reliability/relevance of FICO and the credit reporting agencies, so you can bet your bottom dollar it'll be required to be reported somehow sooner rather than later.

[@Nonsense116]

Took my way too long to find a comment with someone who actually knows what they are talking about. Not peddling some conspiracy theory on "big banks"

[@this_epic_name]

​@@Nonsense116 Lol. Yet, in a sense, my comment hints at that. These BNPL companies have done an end-run around the effective lock on credit and lending that the "traditional" financial sector has enjoyed for a long time. Now, there exists this small option for folks for whom the existing system doesn't work. The existing credit rating system probably doesn't want its apple cart tipped. And so lenders want to see this "phantom debt" on credit reports, but FICO and reporting agencies probably don't want to have to incorporate that data into their scoring algorithms (they've resisted changes in the past). That would be a win for lenders, but a loss for borrowers (if the default rates of BNPL loans presented in the story are accurate). The conspiracy theorist in me tends to think that big banks want the credit score to reflect only that activity that occurs within the "traditional" lending industry (i.e. the industry they largely control) in order to pressure the common folk to participate in *their* system. That, I think, is one of the reasons why paying utility bills on time, paying cell phone bills on time, and debit card / checking account activity aren't included in the thing that is supposed to represent -- at least in some sense -- how well you manage your finances.

[@alphaomega1351]

Debt! Debt! Debt! And more debt! Imagine if there was a real market based on what consumers actually earned and saved. 🤔

[@ronkirk5099]

As an old guy who has only incurred debt twice in my life - one home mortgage and one vehicle loan, I find it puzzling why anyone would go into debt to purchase anything which was not absolutely essential especially with such high interest rates.

[@spatty2589]

The credit card companies are upset since they're losing money. Why they act as if they are concerned about consumers.

[@raidolacorte5146]

Por um acaso isso é o mesmo que a gente chama de compra parcelada?

[@Zapruderfilm1963]

The key is to only spend what you have. If you don’t have the money in which to purchase the item, then don’t buy it. This is excluding vehicle repairs, house repairs, etc. I’m speaking of discretionary spending.

[@manchuk1d]

Easier said then done, America loves having people fall into debt due to materialistic things.

[@marvelouslife1309]

Those who survived the hosing crash, stopped living beyond their means, started saving money and used cards only in emergencies. Banks started running advisements against savings because they were losing interest on debt in the terms of millions. Don't incurr debt of any kind unless its an emergency.

[@OwnNothingBeHappy519]

I left to Germany for a month on a work assignment. I got back to the US and am shocked at how much the food prices have risen.

[@dualexistence]

Making phantom payments to a phantom bank cost me a phantom arm and a phantom leg. A constant phantom pain in my phantom bottom.

[@MitchellEdelman]

For your average consumer this doesnt seem like an actual problem. BNPL defaulting doesnt affect your credit score. If you cant afford a BNPL loan just stop. This however is a massive issue for any industry who uses credit scores, and regulations will only come from their whinning.

[@jondoe406]

Sounds like this is a way for consumers and retailers to bypass the credit industry to do transactions on their own terms. This is a good thing

[@nextsibling]

Totally ignored smart consumers who use BNPL to control cashflow on large purchases so to keep savings in interest bearing accounts for longer.

[@antilogism]

Super important with today's interest rates!!!

[@itbecameclear]

the bnpl cohort are the same types of people who ask you to spot them $50 but never pay it back so i’m no surprised they don’t have the discipline and foresight to say no to these loans.

[@nestharus]

My BNPL from PayPal absolutely shows up in my credit score lol. Same with Amazon and B&H. None of my BNPL is hidden :'(.

[@DavidBrooksNYC]

What is the typical credit score of a buy know pl ? Could be predatory lending to individuals who just can't afford it

[@oliviao2238]

Another potential collapse looms in that market segment, likely leaving taxpayers as the losers. It's hard to believe this situation persists when most consumers are already financially exhausted.

[@sleepycalico]

My neighbor loves "buy now, pay later." She can easily pay in full, but she takes huge emotional pleasure in not paying for things she takes home and making vendors wait. It's perfectly legit, so whatever floats her boat, but it's the exact opposite of my comfort, which comes from having no debt. Maybe a lot of the phantom debt is just due to that type of personality that gets a thrill from not paying for a while.

[@cameronrussell8409]

She's not making vendors wait. She is making the bank wait. The vendors get paid by the bank.

[@sleepycalico]

@@cameronrussell8409 That's fascinating. They aren't both waiting? You think the bank hands over payment in full to the vendor and later is made whole by my neighbor's monthly payments, without interest? That seems very unbanklike. And if that were the case, I would think banks would have a precise bead on phantom debt, because it would be real debt to them.

[@rmfinance1781]

I use buy now pay later here in there. It's convenient if used right. But then again I have a stable income so there's no issues when the payments hit every couple weeks. That being said I currently have no buy now pay later payments pending at this time. ☺️

[@ygrpz]

They don't report it to the credit bureau but they do look at credit. It's almost like in-store credit that looks at your credit or risk score

[@saeedhossain6099]

that Wells Fargo analyst is mad on the company's behalf because the multi installment payment option is cutting into their credit card transaction volume. all of the consumer credit machine is predatory, only buy stuff you can pay for in cash, prioritize needs, not the wants, and don't lets wants become "needs" in your head, no matter what the sales pitch trys to convince you of. edit: a Wells Fargo employee describing poor regulations is hilarious given their track record of past actions.

[@severinjohn]

My first thought, exactly, as soon as I saw these "trusted" analysts were from the most crooked bank in U.S. history still allowed to operate.

[@cweaver4080]

Do we need more regulation to protect people from themselves? If you can't afford it, don't buy it. There are millions of people wanting to take your money, it will never stop.

[@eryu8263]

I don't understand... if these lenders aren't creating coercive environment where consumers get pressured into taking out such loans, why is the onus on the lenders when they're only allowing for easy, 0% interest loans? It is the Consumers who should watch where they spend money. Taking away this mechanism is like taking away loans like credit card or mortgage just because few people have trouble paying them off. It's unbelievable how everything becomes about blaming the big bad corporations, when it is a few consumers who are not exercising restraint. Soon enough, consumers' credit scores will prevent them purchasing via this mechanism if they are irresponsible. Others shouldn't get their options limited just because a few consumers can't be trusted with payment options.

[@antilogism]

I get where you coming from. To me it's still a bit "un-sporting" since we have a lot of really ignorant people with stagnant work skills. Some were lousy at high-school history, math and finance and will never get it. Among some populations there's even a certain pride in being ignorant of core life skills. I once walked with some friends to get our paychecks cashed and while I felt robbed they were perfectly happy donating a good portion of their check as if it was a charity. It's not as negligent as running a lottery but not exactly squeaky clean, in my opinion.

[@eryu8263]

@@antilogism you’re not wrong to want a segment of consumers, namely the less sophisticated and vulnerable ones, protected from predatory practices. But like we shouldn’t outlaw kitchen knives just bc some clumsy adults hurt themselves at times, we can’t limit these mechanisms that promote commerce, which in turn helps economy grow and develop and create jobs. I’m not against creating rules to prevent total ruin of an individual but we also can’t bring down the average just to protect a few at the bottom

[@virginiakingsford2232]

I’m not gonna say buy now pay later is a good thing but after a year of short contract jobs it’s been the reason my husband and I have been able to buy food on 4-5 occasions in the last year. We don’t overspend but when one person is making 60k and the other is without a job for the next couple weeks, you have to do what you have to do.

[@babangill551]

I remember taking one when buying a couch from Ashley. I thought how hard it could be. Horrible horrible mistake. Never again.

[@MrLoobu]

I took out a loan for school.....and that's it. Never made payments on any other debt in my life.

[@VrkPeru-nw2uv]

Broke Now I can’t Pay Later Either is a worldwide pandemic, as this is happening in many countries around the world including USA.

[@Martin_Edmondson]

Yeah, I think I saw a similar video last year about Singapore... not just a USA issue. The rise of digital payments make it simple to just split the cost over a number of months, which leads to overspending.

[@antilogism]

It's been with us in the US since the 1930s (maybe earlier) but it's way easier than ever before and includes tiny purchases.

[@Starship007]

More people raiding their retirement accounts early and taking out home equity loans. Many refusing to downsize . USA use to supersizing now downsizing

[@axnyslie]

The golden rule of consumerism should be "If you can't afford it you don't need it" Trying to keep up with the Jones' for status symbolism or needing the latest and the greatest is a fast track to destitution. Debt is like body fat, it's easy to acquire but very difficult to get rid of.

[@MCPorter83]

I have family that got caught in that desperation. It's sad to see someone owe per month what their paycheck is. It's OK to spread repairs and purchases out over time, and it will save you a lot in interest. Example, if your car needs tires and a new AC and it's fall, wait on the AC, you need tires for the rain and snow. If the windows on your house are old, save up for them. Old windows are not failed windows.

[@chrisaycock5965]

I've avoided these like the plague.. if I can't afford it I don't buy it

[@tfe6705]

Can’t afford it, don’t buy it. That simple. Another real problem is people’s addictions to shopping.

[@chad9971]

Never once have I went to the grocery store and BNPL an option lol. BNPL is majority all luxury/non-essential spend. It’s like a worst credit card. All the interest of a credit card without the benefits.

[@SomeUserNameBlahBlah]

I've never seen this option either at checkout.

[@justinwagner8800]

I've heard that Walmart has this option, but I don't shop there so I'm not sure.

[@caesar9708]

How is it worse than credit cards? Affirm, for example, don't charge late fees or additional/compound interests, unlike credit cards. Credit cards make money off people who can't pay their debt. Affirm loses money if people can't pay their debt. People need to start learning about BNPL before making this kind of judgement, lol

[@jerryanyu8467]

@@caesar9708 Well, it's pretty obvious that no one does fact-checking on the internet.

[@chad9971]

@@caesar9708 Credit cards offer a host of perks such as purchase protection (we just watched a whole segment on BNPL purchasers struggling to recoup returns), warranties, points/cashback (I can't tell you the last time I bought a plane ticket, I've used points), roadside assistance, free checked bags, etc. The BILT credit card is one of the best on the market right now, pay your rent and you get points for it (pay off the balance like with any other credit card). Wells Fargo is losing money hands over fist because of how good that card is (for consumers). BNPL doesn't offer any of that. That's why it's like a credit card but just worse.

[@Sammi_Kristiansen]

Income Share Agreements are the Bootcamp version of "Buy Now, Pay Later". When will CNBC make a video about it?

[@elliestewart7770]

The scratch-whine sound effect halfway through the video had me pausing to check if there were wasps in my room. What a strange artistic choice.

[@Yue665]

If you're someone who pays off their credit card on time like you should, NOT splitting payments at 0% is objectively stupid.

[@MH_6160]

Common sense, if you cannot afford to pay off the bill right then and there…. you cannot afford it, doesn't matter what it is.

[@letsgobrandon416]

Good luck buying a house or car with that attitude.

[@santostv.]

A house is an asset and you build equity hopefully , cars although some say to not do it because it’s a depreciating asset imo if you will make more money by having one you should get a loan for it but a conservative one and not one that you “want”.

[@shaggydawg5419]

@@letsgobrandon416 I paid cash for my brand new car I bought 7 years ago. I'll probably pay cash again when I replace this car with another new one.

[@letsgobrandon416]

@@shaggydawg5419 then you are vastly richer than 90% of the nation and entirely irrelevant to this conversation.

[@letsgobrandon416]

@@santostv. In theory, though few ever realize it as an asset as they spend their entire life paying for it both in loans, but also taxes and maintenance. Add that all up and you'll find is more than the cost of the house when you sell it, so it's a net loss but the loss is disguised over a long period of time. Plus your payout for selling is used to buy the next one because you gotta live some where! So no, for the average person, owning is better than renting, but rarely does it actually turn into a true asset that puts extra money in your pocket unless you are renting it out.

[@pedrohugoneri]

In Brazil this kind of payment is very very common! Maybe starting in 15 or 20years ago. Nowadays they can buy something and split in more than 24 and paying every month for 2years!! Sometimes the staff that we buy is broken, lost or not usual anymore! Many people who have this payment is poor people who doesn’t have money for pay and after that is the fees, if loose one payment the fees is huge! Sometimes turn impossível to pay after that.

[@KJB-gn8mr]

Consumers and the government are in a race who can amass more debt - thank you politicians .

[@mydadspulloutgametrash]

How is that not the consumer's fault?

[@antilogism]

Thank you voters!

[@DieselDucy]

I have 20 credit cards and carry a 0$ balance. I don’t spend more money than I can immediately pay back.

[@nolanpolansky]

ohh so you have all of your needs met

[@DieselDucy]

@@nolanpolansky I choose not to live outside my means.

[@nolanpolansky]

@@DieselDucy makes no sense

[@rebeltheharem7028]

Perhaps, and I mean perhaps, we should be teaching kids responsible spending, budgeting, and financially responsible behavior in school. I know, we stopped doing that since they took out account budgeting from home economics (and took out these classes all together), but maybe we should bring these back and make them required.

[@Mello675]

that'll never happen as long as the objective of the education system is to create a consumer workforce trained to follow orders

[@tiberianexcalibur]

No that’s bad for the economy, how will corporations get you to spend all your money if you’re too busy saving?

[@richguy011]

Doing so would be educating the populace that they have to take a decrease in quality of life. How long would put up with living with multiple roommates just to keep rent affordable?

[@NatashaEstrada]

I think Pay in 4 is probably more financially responsible than putting it on a credit card since the installation loan demands that it's all paid within 6 weeks with 25% being paid up front and 25% every 2 weeks. You can do all kinds of financial shenanigans with credit cards. Pay in 4 is very popular in Europe and I don't see it going anywhere. I think the younger generation is just rejecting traditional banking products.

[@richguy011]

@@NatashaEstrada I see it as a way for businesses to try to capture more customers. They know there are people who can't afford their product but still want to be able to sell to them.

[@rokhamler3352]

I am not from the US, they say this has zero interest but if entire companies run off of this they must be making money from it, so presumably they charge a fee to the buyer for this, or the price paid must be increased if one uses this loan to purchase it?

[@letsgobrandon416]

So people found an innovative buy now pay later system, it has some downsides, but offers a lot of customers what they need. Aaaand in steps the government to regulate it into oblivion.

[@WinstonSmithGPT]

So you literally are mentally unable to listen to a video but just want to get your talking point in the because entitlement.

[@xaionik]

Not government, the banks. BNPL competes with credit cards. So they are pulling strings to get regulators to go after BNPL.

[@Continentalmunkey88]

7:49 social media won't spreadsheet

[@Ascension646]

The amount of payment plans for once, one time payment things have jumped insanely. I don't remember there being this many people paying off concerts months later as opposed to buying the dang ticket once and being done with it. Granted we know concerts have become ultra inflated, but uhh if it takes me 5 months to pay off a show I'll go ahead and hard pass

[@empiresSR]

I put a concert ticket on a pay later option because the artist announced the dates on a day when I didn’t have the ticket money free to spend. It’s not that I couldn’t afford to just pay for the ticket, it just made it easier for me without having to make a bunch of corresponding sacrifices in other areas.

[@Ascension646]

@empiresSR ok, listen to yourself for a minute. I didn't have money to spend cause I had more pressing issues that needed attention. If 30 bucks difference is gonna put you in strange waters for a few months, you might wanna focus on that than spending 200 on a show. Iam not trying to sound dickish, iam just saying concert shows are way overpriced and feeding into it is just gonna make it worse.

[@WinstonSmithGPT]

This is huge now in medical payments

[@kenmore01]

Isnt this a relatively short term debt? If paid, it goes away after four months or so.

[@GarrettOBeirne]

Yes, the problem could be if people do it all the time, that fourth month you now have 7-10 of those payments and can’t pay your regular bills

[@Starship007]

Average number of credit cards per person? How many customers transfer debt to other CC?