Posted on 04/12/2025 7:48:51 AM PDT by Libloather
Small, everyday purchases like a meal from DoorDash are now able to be financed through eat now, pay later options — a practice that some experts deem "predatory."
"You've got to have enough sense to not follow the urge to finance a taco, okay? You have got to be an adult," career coach Ken Coleman told "The Big Money Show," Wednesday.
"This is predatory, and it's going to get a lot of people in deep trouble."
Financial wellness experts are continuously sounding the alarm to cash-strapped consumers, warning them of the devastating impact this financial strategy could have on their credit score as some lenders will begin reporting those loans to credit agencies.
Consumers may risk getting hit with late fees and interest rates, similar to credit cards.
"So your sandwich might show up on your FICO score, especially if you pay for it late," FOX Business' Jackie DeAngelis explained.
Major players like Affirm, Afterpay, and Klarna have risen to prominence at a time when Americans continue to grapple with persisting inflation, high interest rates and student loan payments, which resumed in October 2023 after a pause due to the COVID-19 pandemic.
(Excerpt) Read more at foxbusiness.com ...
Wimpy was everyone’s first thought.
Why buy a ssmmich when you can tell the woman to just make you one?
How much will that sandwich end up costing in the end?
What’s the interest on it? 25%?
I see a whole new world of hurt for those who fall for this...
As a child of the 1950s where the only credit available was at a local mom and pop store where they knew the customers and knew when payday was.
Our credit was called lay away. You pick an item and the store keeps it until you pay it off (generally Christmas gifts).
I did not get my first credit card until I was around 25.
I was shocked the first time I saw someone pay for their groceries with a credit card (this was early 1970s).
I am no longer shocked when I see people use a credit card at a fast food place knowing (statistically ) they will not be paying off their credit card each month and that the $10 meal may very easily end up costing them $15 or $20 over time.
I use credit cards for just about everything. All my utilities are on auto pay. But I pay each card off in full every month.
Oh yeah, those stores are always trying to push their store credit cards and there’s usually something slimy mixed up in there like crazy high interest rates. I always decline and I’ve even had cashiers argue with me, pushing the “But you’ll save XXXX on today’s purchase..” at me.
I don’t even give them my email address when they request it in a tone that makes it sound mandatory. I tell them, “No thanks; I have enough emails to delete daily as it is.” (Yes, I have a junk e-mail account, but I don’t need additional junk coming in.)
It makes sense to put it on the card if you get cash back and you can pay it off immediately.
Could you not have taken that money, financed the balance at 31%, then immediately pay off the balance, or at least refinance it to a lower interest rate card and of course delete the app?
Bring back the $500 Bill! President Trump can do it with a Presidential order! That is how they were stopped!
Just wait until insurance companies access the purchases and determine your health risk because of the food you buy, even if it’s not for you.
You’re a wise and decent person...
Thanks for those kind words. God bless.
I just don’t carry cash anymore. We use our credit card for everything and pay it off at the end of the month.
That makes sense for those who will do just that.
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