The thing that irks me about these schemes is that people think they're inherently bad or a scam when they're NOT! Just because you can't control your own spending doesn't mean these things are bad. They are fine if used responsibly.
Credit should be used on things that will increase personal value. For example buying clothes for job interview is a good spend because a job will increase income/net worth. But buying clothes with credit because of you want to show off at work , it is a naive action. Always pay in full if the purpose of the purchase is not for investment.
I've been using PayPal pay in 3 for the past year and I've had no issue, it comes out when it says each month, and as long as you keep track of it (IE treat it like a bill coming out that you don't spend) it's a great way to spread the cost of something across pay months!
@@tiffhink it’s the fact it’s so easy for ppl to depend to much if they already not good at managing their money. Which puts them to debt. The companies that create these apps say it’s to help shopping easier but ppl being in debt makes them money.
@@Afrinaturality It's cashflow management. If you're working and you know you WILL have the money (salary) but you need something essential NOW (bed, sofa, fridge, school uniform) but you don't have the money for it now, then it makes sense. The dangers are in a) using it when that future income is not guaranteed, b) overusing it for non-essential purchases, and c) being disorganised and not keeping a close eye on when payments are due. If you can't trust yourself not to fall into the above traps, don't dabble. You'll get burnt BAD. Aside from that, it's like any other credit - a handy cashflow management tool.
Spreading the cost out is the smart way to buy stuff 👍 The thing is imagine u buy a phone for £500 but spread the cost of it over 10 months so £50/month, you are supposed to go take the £450 you didn't have to put up and go invest that money so the returns will help pay for the phone (u will end up getting it for less than £500 once u net off ur investment returns) INSTEAD, what most people do is take the £450 "extra" cash they now have and go buy a bunch of crap they dont need 🤦♂️
Honestly!! There are some real dangers with using these services if you are irresponsible! But in an emergency or a situation were you can pay this later it is great!
Something people dont realise is the rich utilise credit differently because they have Assets. Regular people mostly dont have assets (a car and clothing aren't assets, they dont produce income) so the banks dont want to work with you as they do with the rich, they, want to make money *off you* and that's a hugee difference. Yes the rich use money they dont have to obtain things, often more assets and use their existing assets or position to gain that trust - their debt is just paper cause when they sell everything they would be in the black. Always remember that
A car is an asset because it's an item with financial value that can be sold or traded for cash or other financial assets. It just isn't a highly sought asset by financial institutions (like you said) because it comes with liabilities (maintenance, liens,etc.) You're absolutely right about the way wealthy people move on paper. That's what it's all about.
I’ve been using these companies for years and have had no problems. Not everyone can drop hundreds of dollars at one time on something at any given time. If you want something you should get it. Do whatever works for you 🤷🏾♀️
Exactly. What even is the point of this video? Using these big words like "scam" is irresponsible. It's the consumer's responsibility to be aware of the terms and conditions of the contract. It's the same with anything else, like a credit card repayment or utility bill. Miss any payment and there will be repercussions.
One of my family members got in trouble with catalogue debt and ended up on a repayment plan for 7 years with bad credit. It just isn't worth that to clothes and furniture you want (not need) but can't afford.
No, PayPal is interest free, very handy if a large appliance breaks and you need to purchase quick and can spread over 3 months interest free. Pay day loans charge high interest almost immediately and increases massively. PayPal gives breathing space to manage funds, do not use for clothing.
It’s bait and hook, that’s their business model. 3/5 people pay it in their three interest free payments, however the remaining two people don’t leaving them paying interest and charges. It’s the same with credit cards. Points on credit cards is the worst of all these concepts. Your airline miles are being paid for by the single mother who’s struggling through her credit card interest payments each month.
@@2steppin2cali Well it is a form of credit even though it's interest free but your right, if used correctly the impact is positive but if one misses a payment it can have a negative impact your credit score.
So today we're talking all about the various "Buy Now, Pay Later" Schemes out there, what are your thoughts about it? Share a comment with the community! Also get ready for 2022 with Your Brand new "Mind and Money Planner " available and shipping now!: www.thebreakresources.com/
Incredible person reading this, you have everything there is to succeed in life, whatever that is for you. Go after the life you truly want NOW! ✨ I believe in you! Love - Nat ❤️
Idk if stuff is different in the U.K but it stays interest free and it take a 1st payment and then 4 more payments biweekly until its fully paid so its paid off over a 6 week period and that's for after pay.
Happy New year to you and your beautiful family PB and thanks so much for this content, very informative and enjoyed every bit of it. 💯 yes, more content like this please! 🙏🏾
@@misshoneynevercame4832🙄🙄 free with conditions is still free. Just don’t buy things you can’t afford. It’s that simple. And it’s no where near a pay day loan. Pay day loans charge interest from day 1, these don’t. That’s a huge difference.
You’re absolutely right, those platforms seem to market themselves as risk free and aren’t open about outrageous fees and credit risk BNPL seems a bit predatory imo
Maybe you should try each app buy something for no more than $40 US dollars miss a payment then come back with a new video and tell us how it worked out...
On Klarna you have to have the full amount of the actual product in your account before you can pay in increments. So technically you do have the money to pay for it, you’d just rather pay in parts.
