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Cake day: June 15th, 2023

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  • cm0002@lemmy.world
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    toA Boring Dystopia@lemmy.worldI got that debt in me
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    21 days ago

    That’s not who BNPL targets.

    My comment has nothing to do with who they target, just how you can properly take advantage of said service.

    There is, though. Spending the $500 you have in savings is an even exchange. Money for goods/services.

    Spending money you don’t have through BNPL means you’re exchanging a ‘promise to pay’ or an IOU for goods and services. What happens if you don’t pay on time? How much more than the actual purchase price will it cost?

    You need to re-read my comment again, I covered that already

    As far as what happens if you don’t pay, well, the exact same thing that happens when you don’t make payments on any other type of credit

    Except it’s better than other predatory practices such as “Title Loans” because it’s unsecured. So worst case scenario, your credit gets dinged for a while and you got to deal with debt collectors. That’s a far cry from having your car repossessed or foreclosed on your home


  • cm0002@lemmy.world
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    toA Boring Dystopia@lemmy.worldI got that debt in me
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    21 days ago

    Again, nuance, you can take out debt for money “you don’t have” as long as you can comfortably afford it

    My 500 in savings was an example, but if you didn’t have that saved up, there’s nothing wrong with putting it on BNPL because again, there’s typically no interest.

    Functionally, there’s not a whole lot of difference between splitting it into 4 125$ payments on your paychecks, or stashing 125$ from each paycheck to savings.

    Biggest difference is committal, one way you are committed to paying that 125, the other you can skip if you need to (though there are BNPL services that do allow you to “skip” (read: defer) a payment without penalty) But again that goes back to an individuals financial literacy, planning, impulse control and security that you’ll have your job the whole time


  • cm0002@lemmy.world
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    toA Boring Dystopia@lemmy.worldI got that debt in me
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    21 days ago

    BNPL splits the transaction evenly every other week or in some cases, every month. There’s typically no interest or even fees in some cases (Zip)

    BNPL can be good, it can also be as bad as any other debt can be.

    Because they’re typically interest free, it’s essentially “free” money. For example, let’s say you have a big purchase you want to make of $500, you can afford this purchase out right because you saved money for it. But you can also afford to have 4 payments of 125$ every 2 weeks direct from your paycheck.

    It’s better to take the split, and keep that 500 in savings for numerous reasons from generating interest to keeping it for rainy days.

    Now ofc there’s caveats, like everything there’s nuance. Like every other type of credit, whether it’s complimentary to your finances or devastating to it depends on your impulse control, financial literacy, planning and reasons for using that credit.