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'Buy now, pay later' is sending the TikTok generation spiraling into debt

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Re: 'Buy now, pay later' is sending the TikTok generation spiraling into debt

#31

Post by spoonjim »

matnewton85 wrote: post #30
spoonjim wrote: post #28

It's things like this that make me believe that open democracies like the US are doomed to be outcompeted by countries run like China/Russia/Singapore (some work better than others). Buy Now Pay Later for consumer goods is obviously bad. An effective government should be able to just say "it's gone" because it's bad. But in the US there would have to be a law passed, which would be essentially impossible, and even if…

I'll quote my comment elsewhere: "BNPL providers are held to far higher standards than Credit Card, Personal Loan, or Payday Loan companies. I'm not sure I understand the HN addiction to attacking them. Unlike all the examples above, Afterpay doesn't charge interest, has capped late payment fees, and has a very low debt ceiling. It's the perfect way for younger people to learn how to manage debt." I should have menti…

Yes, a high functioning government would essentially wipe out 2/3 or more of consumer lending. As an example, Singapore literally forces some of your income into a savings fund that's just for housing, retirement, and healthcare. It's not something optional -- the nanny state literally taxes you into being a fucking adult. And it works.

Re: 'Buy now, pay later' is sending the TikTok generation spiraling into debt

#32

Post by shakna »

matnewton85 wrote: post #29
shakna wrote: post #27

Earlier quoted context omitted.

This is specifically not the case - loan sharks are frequently punished for creating contracts that are not reasonable, and cannot be upheld by law as it violates consumer protections. One of which is that contracts are required to be reasonably understood by all participating parties.

BNPL providers are held to far higher standards than Credit Card, Personal Loan, or Payday Loan companies. I'm not sure I understand the HN addiction to attacking them. Unlike all the examples above, Afterpay doesn't charge interest, has capped late payment fees, and has a very low debt ceiling. It's the perfect way for younger people to learn how to manage debt.

If a young person is learning to manage debt with them, that necessarily implies that they don't yet comprehend what taking debt means and cannot reasonably be expected to fully understand the consequences - which may make the contract invalid.

Re: 'Buy now, pay later' is sending the TikTok generation spiraling into debt

#33

Post by RandomUser4567 »

adhesive_wombat wrote: post #12

> ... high-level staffers at Affirm and Afterpay ... emphasized the accessibility of these services, especially for younger consumers looking to bolster their credit and consumers working to restore their credit scores Something about that feels pretty dystopian.

Why?

Re: 'Buy now, pay later' is sending the TikTok generation spiraling into debt

#35

Post by LigmaYC »

shakna wrote: post #24
LigmaYC wrote: post #23

Earlier quoted context omitted.

The marketing exists outside of the "buy now, pay later" scheme. "Buy now, pay later" is not a scam.

The very phrasing, "buy now, pay later" is predicated upon the implication that it provides a benefit without a negative.

Where does it imply a benefit without a negative? The "pay later" part is clearly stated

Re: 'Buy now, pay later' is sending the TikTok generation spiraling into debt

#36

Post by LigmaYC »

formerkrogemp wrote: post #7

It seems like the "TikTok" generation is lacking financial literacy. I was too at that age. In the US, we don't typically have a class covering money in the US, which is unfortunate and expensive early in life.

Anybody without financial literacy can deduce why "Buy Now Pay Later" may be bad for them. Theres a deeper issue.

Re: 'Buy now, pay later' is sending the TikTok generation spiraling into debt

#37

Post by Ekaros »

sdze wrote: post #17

Nothing worst then being a debt slave for worthless shit. They will learn.

There is a new sucker born every minute...

The vehicles of exploitation might change, but they will be always around. And I don't think as society we are ready or even capable to stop the debt based instruments. I don't think most people would be happy if we banned all but few categories of lending. Let's say vehicles and housing. And maybe even refinancing on housing.

Re: 'Buy now, pay later' is sending the TikTok generation spiraling into debt

#38

Post by shakna »

LigmaYC wrote: post #35
shakna wrote: post #24

Earlier quoted context omitted.

The very phrasing, "buy now, pay later" is predicated upon the implication that it provides a benefit without a negative.

Where does it imply a benefit without a negative? The "pay later" part is clearly stated

"Pay later" is a benefit, to the audience we're discussing, as it means "not now".

Young adults actually have processing problems over impulse control [0], and so cannot see any drawback to "not now" - in fact they likely do not have a way to fully conceptualise that something will occur in the future.

All "buy now, pay later" translates to is "instant gratification", nothing further.

[0] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2964271/

Re: 'Buy now, pay later' is sending the TikTok generation spiraling into debt

#39

Post by kriops »

spoonjim wrote: post #28

It's things like this that make me believe that open democracies like the US are doomed to be outcompeted by countries run like China/Russia/Singapore (some work better than others). Buy Now Pay Later for consumer goods is obviously bad. An effective government should be able to just say "it's gone" because it's bad. But in the US there would have to be a law passed, which would be essentially impossible, and even if…

> Buy Now Pay Later for consumer goods is obviously bad.

On the contrary it frees up significant economic resources, and so is obviously good. But access to capital, like the good itself, isn't free. In both cases: Don't buy what you can not afford.

Re: 'Buy now, pay later' is sending the TikTok generation spiraling into debt

#40

Post by LigmaYC »

shakna wrote: post #38
LigmaYC wrote: post #35

Earlier quoted context omitted.

Where does it imply a benefit without a negative? The "pay later" part is clearly stated

"Pay later" is a benefit, to the audience we're discussing, as it means "not now". Young adults actually have processing problems over impulse control [0], and so cannot see any drawback to "not now" - in fact they likely do not have a way to fully conceptualise that something will occur in the future. All "buy now, pay later" translates to is "instant gratification", nothing further. [0] https://www.ncbi.nlm.nih.gov…

Lacking impulse control does not mean that the entire concept of "pay later" is a scam.
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