buy now pay later schemes are dangerous... here's why 

the reason BNPL schemes are disproportionately used by fast fashion rather than luxury retailers is bc they deliberately target middle/lower income people. luxury items often cost $1000+, and many people using BNPL may not even have $250 to spare “now”.

it feels like the marketing of these pay later companies targeting women ties in with the notion of "girl math" and the careless way society has been feminizing overconsumption and overspending for literally ages. I think that because women rationalizing impulse purchases has become a silly goofy trait thats inherent of girlhood according to social media (and larger societal stereotypes spanning eons), its easier to capitalize on marketing schemes that hound in on that concept bc women themselves are now more willing than ever to buy into them

I think it's a weird one. A blessing and a curse. Really I think it should only be used for larger purchases that you can afford, but don't want to take the whole financial hit in one go. I actually used one recently to buy a holiday that I knew I could afford outright, however I chose the option to pay a certain amount each month on my payday, so it feels like less of a hit to my bank account.

I don't think anything is wrong with it if it's used responsibly. It's a lot more straightforward than a credit card. But, of course, the issue is that a lot of people don't use it responsibly and it's marketed towards young people because they are more easily influenced. I watched a video on a finance channel where a couple was in debt due, in part, to klarna. One purchase they made with klarna was a huge, expensive toy pony for their kid that the kid doesn't even play with.

most people in society can use these services, but they need to watch their media, ad & internet consumption and check how much they're spending every month. i use paylater to have a bit of extra spending room some months, and i pay it back the next month with no problems. i don't just do this for fun purchases like clothing either. but with clothing that you buy new it's especially good, cause you will be able to try something on and possibly return or exchange it without it ever hitting your bank account at all. of course, the number 1 thing is still: you have to understand these companies. the literal concept of how they make their money is people buying things they cannot afford. obviously that is not a good sign for society no matter how you spin it. but in practice, you can use it and it can be really convenient - it all comes down to personal responsibility. some shouldn't use these services at all, but as long as they are over 18 it is their responsibility to decide that about themselves. predatory companies can only succeed if people turn off their brains. ps sorry for the longer comment, i just enjoy having intelligent discussions while we still can

I understand how this is fuelling consumption, and agree with the points. However, we also need to think about the positives and the sustainability. For example: a lot of people complaining that sustainable fashion is very expensive and unaffordable, and that is the main excuse for people not investing in sustainable fashion. Therefore if sustainable brands adopted this - it really could be a positive thing for sustainability in my opinion. But it is true that it is mainly fast fashion that are benefiting from this at the moment.

I would never use BNPL for fashion. It is mindblowing to me that people do

Buy now pay later schemes were around in the late 70s and early 80s. It was mostly limited to the airline industry where you could buy a ticket now and then pay it back over a period of time. It was phased out and I'm surprised to see that it is back with a bang. It was problematic then so it can't be better now.

your channel is amazingggg ever since i found it, it's made me think differently about a lot of things so thank you !

Maybe the underlying issue is simply financial literacy is not taught - it certainly isn’t in school but surprisingly even at home. Budgeting, how money, credit, interest etc works is vital. We can’t keep slapping warning labels on everything, at some point people need to take personal responsibility otherwise the nanny state will take over and eventually will control you. Responsibility stops at the individual, if they cannot understand debt and how that affects them then they are the issue - we are at an age where information is readily available as never before. People need to take ownership and not heed a warning on a fashion fashion website about what they are signing up to.

Really enjoying your channel! Love more analytical approach to fashion and fashion industry.

So true bestie…(as I pay off my last payment) lol. The dopamine hit decreased once I got medicated for my ADHD. I think that because I’ve always had a high credit score and never messed a payment I never worried. In most cases it was things that I could afford but didn’t want to pay for all at once (which means these were things I didn't need)

Thank you, I needed to see it

Well done on the 3000+, please continue with the great content Katie, take care.

Especially luxury brands are using these because most younger people couldn’t afford their products without it. It’s used for high cost products to be made attainable by someone with a lower income. Which in my opinion isn’t a good thing. It’s worse than a credit card because it’s so easy to buy something you don’t really want without having time to examine the financial repercussions.

don't forget if a product is sold and has a bnpl advertised for free... its already worked into the price. so even if you want to pay full price right now, the price is already inflated and your paying for these bnpl services.

not 100% related, but after reading the title, I thought it was about ordering products and paying only after receiving. it's kind of a problem for me, because I know I'll have to pay this sum later, but it doesn't leave my account, and it creates a feeling of having more money to spare than you actually do. I don't think I've used the actual bnpl scheme, because I'm "old school" and I prefer save up and then by and feel free of this burden what makes you treat credit money the same as "real" money, I think, is looking at the balance of your credit card thinking "I'll have to repay it". i went away on vacations and then got fired from my workplace so I have a considerable debut (as compared to the ideal of having no debt), and every time I look at my balance or have to take money from it, I think how it'll get subtracted from my future salary. it hurts, but helps not relax too much

I found these very much helpful during inflation… but I’m very mindful with how I use it so I don’t drown in “payments”.

I used one of the BNPL schemes once to buy a nintendo switch, I managed to pay it off and I then closed the accout but I was close to not having enough money to pay tbh. I just managed to pay off a credit card, I have some more cards to get yet

Commenting so your channel grows 🎉

It’s another symptom of late stage capitalism and overconsumption. Money is just being sucked up by wealthy and not going back to the workers. People aren’t being compensated fairly for their labor which is why many resort to the BNPL scheme. Capitalism feeds itself on overconsumption which is why advertisers are becoming more aggressive by increasing the number of ads and their length. That’s why BNPl schemes are so appealing because you can get access things without paying for the full price up front. It feeds off of people’s desperation in a lot of cases. It’s no coincidence that many companies have been reporting record profits meanwhile everyone else is getting poorer because of this.

Not me genuinely thinking that BNPL was just a helpful way to build my credit score (it went up but gheez this is so bad, think I was having rose tinted glasses on) would never use BNPL if I didn’t have the item or items total amount, it’s wild to think people are in debt from clothes that are made so badly 😅

IMO BNPL is very useful if you have self-control and spend responsibly as it allows you to split your payments into few months in the event you need to make emergency purchases. At the same time it can be very dangerous if you shop irresponsibly and overspend, it's a double-edged sword just like credit cards.

Fincancial literacy needs to be a class taught in school

Women are more inclined to spend the "pretty pennies" on something pretty, many girls are not REALLY financially educated enough and don't often associate future spending with themselves. A disassociation essentially. Its not that men don't use BNPL however, men typically got for things FAR more expensive (watches, cars...sterotypically) and these are not something you can just mentally dumb down as "oh its only £10 a month". Whereas with girls, we tend to go more for the cheaper fashion (fast fashion) which SEEMS affordable but by the time you've bought 100 items on BNPL your future self will regret it immessly, especially considering it barely lasts more than 1 season. I look at BNPL the same way I see cars (since both things and cars depreciate in value). I'm a woman, but I think with age (I'm 29) you start to prioritise important purchases over little ones. I shop on discounts, sales etc. but never fast fashion. I'd rather spend £100 on a gorgeous well crafted 100% silk top (on sale from £300+!) rather than £100 on 5 badly made polyester tops that I'll throw away next month. You're not going to buy 5 silk tops at once though, but they sure will last much longer and feel better on your skin + due to expense, you won't be throwing it away anytime soon. BNPL is okay if you A. Have the funds to be able to afford to put it in full but choose to use BNPL because of convenience B. You KNOW you will not struggle to pay and it fits within your monthly budget comfortably C. You use it for a short period and D. You have had a thought about the item so you're certain its something you really want, is worth your money/energy and you will use for a LONG time.

i wear lolita fashion and i only use BNPL for lolita dresses because they can be quite expensive. i don’t prefer it, but it’s easier to make 4 payments of $20 than 1 payment of $80 because i’m a broke university student. doing it for cheap purchases that you make frequently can be really harmful in the long run though. edit: i don’t purchase these items very often and this is the only occasion i use BNPL for. if it’s a small purchase, it’s infinitely better to get it out of the way first.