Buy Now, Pay Later Just Became Even More Dangerous - The Dark Side Of BNPL

Buy now, pay later companies have been cementing themselves as a top way to pay for your purchases - allowing customers to pay less right away, but still get their items up front, and then pay over time with no interest. And on the surface, it seems great! Who wouldn’t like the idea of buying the things you want for less money? Then being able to pay it off over a few months with no interest? Well, that’s not really the full story - there’s more to buy now, pay later, or BNPL than people think. Today we're going to break down the sneaky way companies like AfterPay, Affirm and Klarna actually work, and how it's become even more dangerous for people.

0:00 Buy now, pay later companies have a catch
1:27 BNPL companies charge high fees
4:09 The BNPL companies and stores benefit most...
6:21 ...and most consumers don't use BNPL in a way that benefits them
8:36 And now BNPL companies are even more dangerous

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[stephandden]

Have you had any experiences using buy now, pay later? Let us know! ⬇

[TheMFStudios]

After pay has made it possible for me to make Christmas happen for the last 3 years. Just put it in the budget and plan ahead. It’s not hard. I don’t eat out for a couples weeks and I’m golden. Not sure what this video is on about.

[fatimabraxton]

I use afterpay all the time, and always pay on time .no issues and it has been a blessing being a single mother with no help. Gratitude 🦋

[Cheezwizzie]

I use Klarna, but I'm not stupid. I only buy what I'd planned to buy and nothing more. I've never missed a payment.

[jordanperez]

If you can afford to make payments and have a steady job, you’re Gucci. But if you can’t afford it, don’t buy something hoping that you will scrum together the payments. Just take accountability

[deniseprichett]

I have used Buy Now and Play Later vendors with no problems. You just have to put them in your budget. They also give you the option to autopay, but I usually pay them before the due date.

[lollipopcorndog]

The dangerous part is that people start becoming addicted to shopping. Many already are but the addiction worsens. The best way to use those BNPL services to not go on a shopping spree and make a payment plan for one thing at a time. Buying multiple items (or more) at a time would get you lost, especially if it’s high-ticket goods you’re impulse buying. It’s a good thing they have spending limits but it doesn’t mean you can’t use other BNPL apps.

[teeth]

It is not the dark side of BNPL, it is the dark side of people not paying back what they lent in the tieframe they knew was there. It clearly states that you get fees and others costs if you do not pay.
BNPL i have ussed several tme. It is great, if you can pay back.
If not, STAY away!! simple.

[liveinthemiddle]

I have a high limit on Klarna but guess what? I’m able to pay it back most times before the payoff is due! I purchase big ticket items and pay them off. Not everyone’s situation is the same.

[teresaspena]

I have been using Klarna and so far so good. I like it. You just have to be responsible and know that you have to make your payments every 2 weeks.

[MimiLuv]

i've used Afterpay and love it. they've even increased my shopping limit. For me it's better this way simply because walking around with that plastic card in my wallet that have gotten me into trouble in the past just seems like a magic card that i swipe and go without thinking of a later. It's something of preferences we're all wired differently.

[Thejoemegashow]

Had me till the gun bit. When you buy a gun with credova, that firearm is shipped to a Federal Firearms Licensed Dealer, at that dealer they do a full background check. It does not make it any easier for anyone to purchase a gun other than from a PURELY financial perspective. It in NO WAY affects the ability of the buyer to obtain one assuming they are using legal means to do so.

[shyhrk]

I avoid any kind of debt/installments, because I know they're there to make more money, not to help us. Unless it's something I need to barely live, like housing, food, etc, when I turned poor, ... If nothing happened to me that forces me to loan/credit/installments, I will never use BNPL. Unless I immediately need it, I rather delay my purchases and invest the money instead. I found that I like having a little bit more money in the long run, than having to pay more money in the end just because I want to buy something expensive that I don't immediately need.

[SuperLarebel]

I’ve learned my lesson with Credit cards, I’ve had Afterpay since it came out and I love it! I only use it when I need it. I use it more specifically for back to school or emergencies

[saintriley]

Always pay everything up front and in full! If you can’t physically afford to do so, that should tell you something.

[MysticAngel]

Very insightful video, did not know that these companies charge vendors more, on the hopes that customers will end up buying more than what they planned to buy. True definition of "there is no such thing as a free lunch. If the lunch is free, someone else paid for it". Have not used any of these buy now pay later options and won't plan on doing that since I don't buy what I cannot afford or budgeted for. Sad, because products like these end up keeping some middle-class people poor (betting on a good percentage of people failing to make payments on time).

[gokou]

I only use Klarna when it would actually save me money.

I use it to buy only what I was going to buy anyway, That's called Self-Discipline, and I learned it from various Martial Arts and Meditation.

I use Klarna to buy in bulk, which ultimately saves me money. I wouldn't be able to make those money saving bulk purchases without Klarna

[stacy-annmorgan]

I saw my credit card recently started to offer this. I did a large purchase of 3400 on my CC and I clicked it out of curiosity to see what was it and as soon as I saw interest I laughed and was like no way. That 3400 gave me $29 in cashback and was paid off before my bill came out. They not catching me every do pay later.

[jonnymars]

I like when people like this claim its bad cause it takes money for a loan.check into cash does the same. They are not bad its reasonable if you are not bad. You arent going to have the whole 200 so you pay 20 in installment payments with a lil interests.its no different than a credit card. The difference amd why i think videos like this are made is cauae the bank companies dont want these new ways. They want it through the bank itself. So here comes every young person explaining credit and it takes to pay more. No shit sherlock they loaned you money and you pay them for loaning you it. As every other place does. Credit card payments not paid on time or paid to fast will affect your credit score.

[daniel.h]

Unfortunately, some people will not learn 😾 but great information as always guys! 🙏🏿