Martin Lewis: Do you use Buy Now Pay Later - if you do beware, it’s not regulated (yet!)

[@davidlazarus67]

I do think that buy now pay later for a takeaway is a joke. I do however use it from Amazon and regularly clear them ahead of the end date. I use it as a way to even out my cash flow. It should be regulated.

[@mrtuber3491]

I use the interest free buy now pay later even though I have the money to pay outright. Have that money earn me interest is a benefit but of course I make sure I pay on time before they are able to charge me interest on the debt. If you don’t have self control on your spending then avoid it.

[@richardstrangward4372]

I often use PayPal credit and repay in four payments. Works for but I am very careful not to take on anything I can’t afford.

[@nedmurry7283]

I was asked in Argos if i wanted Buy Now Pay Later on a Lightbulb that cost £10. 😂

[@jumpa654]

That's a joke. It's as if they're trying to get you into debt, so they can charge interest on it afterwards.

[@Scoobydcs]

Iv used PayPal pay in 3 a few times. Not had a problem so far

[@UKRenna]

PayPal (Credit) is regulated.

[@bob1234881]

So far... Well said.

[@Scoobydcs]

@bob1234881 iv 9nly used it to build rating rating. I havnt bought anything I didn't have all the money got at the time. Since leaving a toxic marriage and partly watching alot of Martins videos I'm far more financially savvy than I used to be

[@onlyweatherlol93]

PayPal is regulated. They have a fully fledged licence to lend and must abide by the Consumer Credit Act.

[@111dddcca]

How does it improve my finances. If I can't buy a luxury item in one payment, I cant afford it

[@nicolasbenson009]

High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.

[@TinaJames222]

It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.

[@ClarkeGriffiny7]

People often overlook the value of financial advisors until they experience the downside of emotional decision-making. I recall a few summers ago, after a difficult divorce, when I needed help reviving my struggling business. I did some research and found a licensed advisor who worked diligently to grow my reserves, even amid inflation. As a result, my reserves grew from $285k to around $720k.

[@Hectorkante]

That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?

[@ClarkeGriffiny7]

“Melissa Terri Swayne” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.

[@BellamyGriffin19]

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

[@richardjames3022]

I wouldn't normally buy now pay later, but I had to have windows replaced, so payed half and the remainder is interest free as a way of having some money left as a pensioner with limited money

[@onlyweatherlol93]

That's fair enough. In some situations, BNPL is absolutely brilliant and works for big purchases like kitchens and bathrooms on finance. The company I work for used to offer BNPL finance products for those kinds of purchases, and where one paid in full within the promotional period, it proved very useful. One could still have been entitled to an interest saving if settling slightly after the deadline of promotion. Whilst I do believe regulation is important, education is even more important

[@elrevesyelderecho]

1:51 That's customer responsibility and education not a government - law problem

[@nikobellic6264]

Most companies are not regulated correctly, the consumer is always left hanging when something goes wrong because these companies know you’ll not have the funds for court action

[@claire2088]

I really hope they put something generic through to capture all the various forms of debt that keep popping up, it feels like every few years we hear about a new type of debt that's spiralling out of control

[@trickydicky90]

I foolishly used it to buy a tv because I figured it's free money for 2 years, then I pay it off, which I did. However, what I wasn't aware of is that a contract with said credit company trashed for a while my credit rating. As a result, I couldn't get BT broadband, o2 mobile phone contract, or an o2 sim only deal, all declined my credit check. So be warned. It's free money, but it has a sting in the tail.

[@elrevesyelderecho]

3:24 Agree with you. Following consumer duty they have to do what you already said. The regulation is there already

[@jrsc01.]

having BNPL Interest free, on a catalogue item etc, you should always read the terms eg, the interest still mounts up and if not fully paid up by the end date, the remaining lump sum of interest is also slapped on it too in one go.

[@chintantiwari7714]

I don't know how to express my gratitude for the services and information you provide, I know I'd be lost without you. Just wanted you to know that, sir 🤝

[@johnny-S]

It would be helpful to give examples of the specific companies that fall under the Buy now pay later umbrella.

[@1976nf]

Clearpay, Klarna, PayPal pay in 3 and Zilch come to mind. The retailer will offer whichever one(s) they use as a payment option in the checkout.

[@danielmyers]

Well...that would be advertising or signposting people to the very thing that we're telling them to beware of!

[@timothypeacock2737]

I don’t use this and I think to pay for things in instalments is a good idea if it’s really necessary especially if it’s with no interest People have to regulate themselves and make sure that they can make the payments You don’t recommend credit cards and not everybody has savings. There has to be some way that people can buy important things if they have not got the funds up front The idea of buy now pay later for a meal is ridiculous, but to use it for perhaps a kitchen appliance is quite feasible These options are a good idea and can make something affordable Rebecca

[@TJBPlays]

I usually have the money there to cover the full cost but will after pay a big chunk off and then pay the rest by the end date just to save my bank being hit with a massive sum in one go. As long as you are sensible its fine, but using it for takeaways or cheap items is madness to me.

[@caboodle5462]

I tend not to do the buy now pay later but I have used paypals pay in 3 many times.

[@MyYoutube-y3s]

Was shocked other day when someone came to make a buy now pay later deal on a £15 meal, well that became £32 once she realised it’s BNPL

[@ED-209UHD]

“I know Martin Lewis got two power showers out of them one for him and one for his brother in law” 😂

[@RR-mt2wp]

Great advice Martin once again.

[@3thinking]

How the hell does it take this long to become a regulated financial loan?

[@starscream6665]

Stay out of debt, save and purchase outright.

[@stephen_ne8406]

Wouldn’t dare. If you can afford it, don’t get into debt over something stupid. Even if you can pay it

[@johntitor.]

Cool story bro.

[@jumpa654]

It's too easy to use 'buy now pay later'. It should be much more difficult to use. I avoid it now, and only use it if essential.

[@elrevesyelderecho]

2:37 So, people are doing exactly what the government is doing We are now at 100% of public debt over GDP. So, if the government is wasting taxes payer money why you asking them to regulate this service? What they now about keep clean finance? Educate people. Everybody should know how to budgeting and keep a good credit score and when to use or not this service

[@111dddcca]

Typical Brits getting scammed into buying luxury goods with debt. Not difficult to pull the wool over their eyes 😂🇬🇧

[@elrevesyelderecho]

2:16 Once again, that' customer education regarding to Credit Score and how to manage their finance, but a government - law problem.

[@Terry-g9j]

Im lucky if i see something i want i just buy it 😀

[@IMeanMachine101]

Sounds like a personal issue

[@will_how]

Pearl clutching much? How is buying something you can afford and keeping the rest in high interest savings for months, bad financial practice? Don't tar all users of bnpl with the same brush. If someone wants to give me a 0% interest loan, I'll take it all day long...

[@octocam6055]

Martin's initial comment was "I'm not against it in principle". The way you have described using it is perfectly logical. The issue is, if unregulated, it is those without financial acumen that will suffer. The main thing regulation serves to do is save people from potentially ruining themselves financially. It will make literally no difference to those who use it in the logical way you described.

[@ghengis430]

Did you listen to the whole thing? Klarna and co are a huge temptation for low income people, and like Wonga did, give those with less savvy a false sense of security. Even though I can afford it, I'd prefer not to.

[@Patrick-y4d1z]

The point is that it isn't regulated - so consumer protection is minimal or non existent.

[@LittleTrader968]

Typical, Multi Millionaire wants to regulate loans for poor people 🤣😂😅

[@JaneAustenAteMyCat]

If between the buying and the paying you're saving the money (ie it's earning you interest), it's worth doing, but if you can't control your spending, or if you can't calculate your financial situation properly, then 'buy now, pay later' is a terrible idea. Plenty of people don't have adequate maths skills to figure out whether something is affordable and that's something *no* company takes into account when really they should because how can a person sign up to something they literally don't understand? Even with GCSE maths, calculating interest the way credit companies do it is really tricky. Legally, how can a person be responsible if they don't understand what they're signing?

[@bob1234881]

Only buy something you can afford to buy. If you get an interest-free loan, put the savings in the stock market. Low cost S&P. Spxl. Or better yet. Don't buy it. Invest it.