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Horrible. People ought to know enough to not use these products in the first place, but people will use it anyway. They should be required to show the long term
by mberning 5y ago
Horrible. People ought to know enough to not use these products in the first place, but people will use it anyway. They should be required to show the long term effects before being used, much like the gore packaging used on cigarettes in some places. What’s the financial equivalent of lung cancer or having a stoma?
- chrisseaton 5y agoThe long-term effects of a zero-interest loan? What are those?
- version_five 5y agoThe OP is onviously using hyperbole, but there are certainly long term effects from encouraging people to spend beyond their means. For example, it makes people's financial position more precarious: if your income is mostly committed to monthly payments, you are in more danger of getting into trouble from a layoff, illness, etc. If a big portion of society is in this position (and they are) this is a concern. I think people should be allowed to make their own choices, but I don't believe it's harmless to promote living beyond one's means.
- mberning 5y agoRight. Afterpay, Affirm, Klarna, etc. are generally not used by well off and financially literate/prudent people. Just like gambling and lotteries. They are generally used by people that don’t need help screwing up their finances. While I do agree that people should be free to do what they want I think it should be presented with some realistic and frankly harsh warnings.
- phist_mcgee 5y agoYou sound like a BNPL marketer. The loan has late fees, the app is branded as a easy POS way to buy things with money you don't have. There is no credit check. You can sign up to a dozen of the services at once. It is credit, it has the same negative effects as credit. BNPL is as bad for people as 20% apy credit cards are.
- chrisseaton 5y agoBeing more charitable, I think it's marketed as a way for people who budget monthly to spread their charges.
- systemvoltage 5y agoThe point is that if they're stretching payments over multiple weeks/months then they can't afford it.
- elvinyung 5y agoWould you say the same about a house? A car? You might say that buying a house on credit isn't frivolous but a pair of shoes on credit is, but where do you draw the line in the middle? (Disclaimer: I work at Square, but I am otherwise completely uninvolved with this acquisition or product area.)
- systemvoltage 5y agoGreat question and made me think. I think the difference may be that people that need to stretch payments for smaller purchases tend to build up credit card debt and fall into 18% APR for years and never get out of it. Car loans and Houses have a very controlled lending market. Even more so with business loans. I think there is big difference between monthly payments for a Go Pro camera and debt financing your new restaurant.
- chrisseaton 5y agoWhat is your logic behind that?
- mberning 5y agoRight. They are giving out interest free loans to people out of the goodness of their heart. What a swell company. Wait what? They make more profit when people fuck up? Well I am shocked.
- nsonha 5y ago
- the__alchemist 5y agoWhat do you mean by this?