The PROBLEM With Buy Now Pay Later

In this video, we go over the truth about Buy Now Pay Later and everything you need to know about point of sale loans. Different Buy Now Pay Later apps and Buy Now Pay Later websites like Klarna, Afterpay, and Affirm have made it very easy to spend more money on both things that you may want and need; so it’s important to understand BNPL and how it can affect your financial health.

Here we’ll talk about what Buy Now Pay Later is, why I think you should avoid using payment options at checkout like Klarna, Afterpay, and Affirm, a similar alternative that is MUCH better, and other important things like that.

*These offers are subject to change. The current offers are listed as of the filming of this video.

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#BuyNowPayLater

The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

Daniel Braun is not a financial advisor. This video is for entertainment and educational purposes only, it is not financial advice.

[peterk]

I saw a $3 item on Wish that you could split into 4 payments of 75 cents lol

[smitz]

I paid off two affirm loans early and it raised my credit score 11 points. I got a big credit line increase from Capital One, and an instant approval for an Amex gold card.

[mricoa]

I’ve used Afterpay a couple of times, I don’t see how it’s very different than credit cards though. They both have their pros & cons, but ultimately it’s accumulating debt.
As long as you’re financially responsible, I don’t see it as a big problem.

[crsmja]

I used Affirm to pay off a scooter in 4 payments, it's only a scam when you don't have the money but don't have discipline. It's all about blaming everything else except one's own actions

[ejmbok]

Ive used KLARNA and AFTER PAY multiple times I’ve never had any issues

[cwilson]

I've typically only used bnpl for big ticket items like furniture, I did use it once for a plane ticket. It works for me, I think it's great.

[mariocanchola]

In my personal experience, BNPL has helped me control my CC utilization since I keep track of my expenses on a weekly basis. As long as you're responsible within your own constraints, this is just another option available for people who love to shop for deals

[WildxChiild]

Afterpay is awesome. I've used it 3 times within the past year and had No issues. There should be more apps like it to be honest. I didn't care for Klarna because my credit score is meh, so I didn't get approved but Afterpay? Easy peasy and straight to the point. 🤷🏽‍♀️

[tsims]

I use them all the time. They work for me. I don't see the problem, if you are financially responsible.

[Packerm]

Cell phone companies do the same thing. This is trying to teach the younger generation to make payments rather then own it, and i completely disagree with this. With the exception of house and car, you should pay everything in cash.

[danielponder]

The problem with “buy now pay later” is payment stacking. People say “I can afford 40 every two weeks” forgetting they have a car payment in between that, rent or mortgage, student loan payments, other credit payments etc. people who use multiple But it now don’t realize they might owe 40$ every week or more for different payments.

[nickporter]

I like your explanation of Save Now Pay Later. Especially today, it's super easy to create a separate savings account with a decent interest rate (AMEX, Capital One, etc.) where you can set aside your savings until you have enough to purchase what you want. It's like the envelope method, just a little more modern.

[AnthonyVenture]

This is all very true and you showed some great statistics on this topic. We are essentially incentivizing a new and more prolific layaway generation.

We already see credit card spending going up, and debt repayments starting to come down with 42% of buy now pay later users making late or nonexistent payments.

Crazy times, great video bringing this to light Daniel.

[deekley]

Great video, super thorough! Thanks Daniel!

[Karmiangod]

One thing I appreciate is that you're not dissing the people who use buy now pay later but also giving them advice and even solutions which I love

[starchild]

I’ve been using Affirm for over a year and it’s been great. I use it to buy statues I enjoy collecting and replacing my iPad. If you do it within budget then it’s not a problem. I stretch it over the 12 months and it’s never been an issue.

[zhennilin]

I actually like using BNPL plans, I don’t buy anything that otherwise I wouldn’t have, and I select my credit card as the payment method so I’m still receiving cash back points, it just stretches the payment out instead of having it all on my card at once.

[matthewvillegas]

Great share Dan! I used affirm once when I didn’t know better. For myself, it helped having the financial discipline of using only cash or debit for years. Thanks for the lessons on finances and navigating the credit card industry.

[eddiemurray]

I loved this video great topic to cover. I’ve used these companies before, I’m a sneaker guy and I was trying to buy some particularly hot sneakers that were gonna sell out and I tried using a credit card and missed out on a pair I really liked. Next time around oddly enough the same sneaker differ color way I used Klarna for checkout instead and my transaction went through needless to say I’ve been using them ever since. 🤷🏿‍♂️ I wouldn’t call it predatory lending but it’s def really great conditioning so ppl get comfortable making payments instead of own stuff.

[skionen]

So what as long as you pay it on time…