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What I'm concerned about is in the graph - why the hell are 46% of consumers using BNPL for "Clothing, Shoes, and Accessories"? Forty six percent of people woul

by alexb_ 4y ago

What I'm concerned about is in the graph - why the hell are 46% of consumers using BNPL for "Clothing, Shoes, and Accessories"? Forty six percent of people would rather take on debt to finance their clothes than go to a thrift store? >It’s been helpful for Amber Kincade, who’s been using the installment option on the food delivery app Instacart. Why, oh god WHY, are you buying delivered food on Instacart if you are so poor you have to use BNPL to stay alive? Why are you not saving money by going to the store yourself? Are people so desensitized to the idea of debt they think going into it for conveniences, or for fashion, are smart decisions?

MattGaiser 4y ago
A societal history of debt for clothes, shoes, and accessories perhaps? https://en.wikipedia.org/wiki/Layaway https://en.wikipedia.org/wiki/Layaway There is a fairly long history of micro financing clothing purchases, with clothing stores being some of the most prominent.
- mrguyorama 4y ago
  Just remember that life of a poor person is misery and every transaction either adds to that misery or is a desperate attempt to stave off that misery for a little longer, often by necessity. "Fiscal responsiblity" doesn't make a bit of difference when you earn $40k a year, spend half that on rent, and then little timmy needs to go to the emergency room.
antasvara 4y ago
Is BNPL available at a store in person? Instacart is more expensive, but BNPL costs less money at the time of purchase than going to the store. The BNPL for clothing and shoes likely isn't the same people that need it to pay for groceries. These services allow you to buy more trendy clothing now at the expense of saving and buying it later. Is that "smart?" Absolutely not. But it uses the same logic as a lot of advertising: that you'll be missing out if you don't watch/buy something very soon.
- alexb_ 4y ago
  If that's the case, then the problem should be approached as a societal, "people don't understand the consequences of their actions" problem and not a "the economy is going to die tomorrow" problem.
- boeingUH60 4y ago
  > But it uses the same logic as a lot of advertising: that you'll be missing out if you don't watch/buy something very soon. Sure, but this is hardly a valid excuse. Ads are very easy to ignore, more so clothing ads. Everyone sees multiple advertisements every day for things they don't even consider buying. It's not like clothes are usually expensive; you can get good clothes for a reasonable price. What I don't fully understand is if this is just people that normally use credit cards switching to BNPL...if so, then there's likely no cause for alarm. Any way, coming from a country where virtually no one uses credit cards, taking on debt to buy clothes is very strange.
hindsightbias 4y ago
You presume these people can afford a car payment, insurance and the gas. And they don't have a suspended license.
theGnuMe 4y ago
Maybe they live in a food desert and don't have adequate transportation.
reducesuffering 4y ago
> Forty six percent of people would rather take on debt to finance their clothes than go to a thrift store? Why do you think some people on HN are getting paid $400k to spam advertisements at people every minute? [manipulating them into making more purchases]
tenpies 4y ago
> What I'm concerned about is in the graph - why the hell are 46% of consumers using BNPL for "Clothing, Shoes, and Accessories" My question is what % are they paying for financing. I've financed several things with BNPL. Every time it was for 0%. At a time when inflation is whatever absurdly high number and banks are paying ~4% for cash deposits, not taking a 0% loan would be silly. It's free money and my bigger surprise is why aren't 100% of consumers financing everything.

by alexb_ 4y ago

MattGaiser 4y ago

A societal history of debt for clothes, shoes, and accessories perhaps? https://en.wikipedia.org/wiki/Layaway https://en.wikipedia.org/wiki/Layaway There is a fairly long history of micro financing clothing purchases, with clothing stores being some of the most prominent.

mrguyorama 4y ago
Just remember that life of a poor person is misery and every transaction either adds to that misery or is a desperate attempt to stave off that misery for a little longer, often by necessity. "Fiscal responsiblity" doesn't make a bit of difference when you earn $40k a year, spend half that on rent, and then little timmy needs to go to the emergency room.

antasvara 4y ago

Is BNPL available at a store in person? Instacart is more expensive, but BNPL costs less money at the time of purchase than going to the store. The BNPL for clothing and shoes likely isn't the same people that need it to pay for groceries. These services allow you to buy more trendy clothing now at the expense of saving and buying it later. Is that "smart?" Absolutely not. But it uses the same logic as a lot of advertising: that you'll be missing out if you don't watch/buy something very soon.

alexb_ 4y ago
If that's the case, then the problem should be approached as a societal, "people don't understand the consequences of their actions" problem and not a "the economy is going to die tomorrow" problem.
boeingUH60 4y ago
> But it uses the same logic as a lot of advertising: that you'll be missing out if you don't watch/buy something very soon. Sure, but this is hardly a valid excuse. Ads are very easy to ignore, more so clothing ads. Everyone sees multiple advertisements every day for things they don't even consider buying. It's not like clothes are usually expensive; you can get good clothes for a reasonable price. What I don't fully understand is if this is just people that normally use credit cards switching to BNPL...if so, then there's likely no cause for alarm. Any way, coming from a country where virtually no one uses credit cards, taking on debt to buy clothes is very strange.

hindsightbias 4y ago

You presume these people can afford a car payment, insurance and the gas. And they don't have a suspended license.

theGnuMe 4y ago

Maybe they live in a food desert and don't have adequate transportation.

reducesuffering 4y ago

> Forty six percent of people would rather take on debt to finance their clothes than go to a thrift store? Why do you think some people on HN are getting paid $400k to spam advertisements at people every minute? [manipulating them into making more purchases]

tenpies 4y ago

> What I'm concerned about is in the graph - why the hell are 46% of consumers using BNPL for "Clothing, Shoes, and Accessories" My question is what % are they paying for financing. I've financed several things with BNPL. Every time it was for 0%. At a time when inflation is whatever absurdly high number and banks are paying ~4% for cash deposits, not taking a 0% loan would be silly. It's free money and my bigger surprise is why aren't 100% of consumers financing everything.