Comment on More Americans are financing groceries with buy now, pay later loans — and more are paying those bills late, survey says

M0oP0o@mander.xyz ⁨2⁩ ⁨weeks⁩ ago

• Monstrosity@lemm.ee ⁨2⁩ ⁨weeks⁩ ago

  Also odd to think people can put off eating until they have the proper funds.

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  • M0oP0o@mander.xyz ⁨2⁩ ⁨weeks⁩ ago

    I am talking more about the people lending the money, not sure why they think this would be sound lending. People will do far worse then default on a loan to keep eating.

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    • Monstrosity@lemm.ee ⁨2⁩ ⁨weeks⁩ ago

      Oh, I guess I was assuming the vast majority of these folks (I’m one of them actually) are using credit cards, so the loaners don’t really know ahead of time.

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      • M0oP0o@mander.xyz ⁨2⁩ ⁨weeks⁩ ago

        I can’t open the article (forbidden) but I am also assuming this is about the new DoorDash and others eat now pay later crap.

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    • AeonFelis@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

      Money is like stamina - you usually have much more than you think, but accessing it is not without a serious toll. Extreme example - you can probably sell an organ to cover your debt. And there is a wide spectrum of things you can do before reaching that point, many of them crossing the legal, ethical, and humane border.

      The original BNPL creditors are not going to make you do them. They need to be legitimate, customer-facing businesses. But they can sell your debt to collection agencies, which will be more willing to put pressure on you. And if that doesn’t work - there are always gray market collectors to sell it to.

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      • M0oP0o@mander.xyz ⁨2⁩ ⁨weeks⁩ ago

        As someone who has worked a bit in lending (many many years ago), there is diminishing returns to bad loans. No one is sending people to “break knees” over BNPL loans, they charge so many fees just to cover the defaults. There is no real “grey market” to sell these bad loans to (at least for now). They harass and threaten a whole lot, but really don’t do much (due to cost not morals). At the point people are taking payday loans out to buy food, you have got to the point of trying to squeeze blood out of a stone.

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• Laser@feddit.org ⁨2⁩ ⁨weeks⁩ ago

  First off, I fully agree with you. But how people are lured in is that there is no interest if you pay on time, so it’s advertised as interest-free. But obviously the business model is built upon people not paying on time, and as such one should calculate that cost into it…

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  • M0oP0o@mander.xyz ⁨2⁩ ⁨weeks⁩ ago

    This works when talking about seadoos and lifted trucks. When it is food the title of “fool” goes from lendee to lender.

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• NauticalNoodle@lemmy.ml ⁨2⁩ ⁨weeks⁩ ago

  …And the additional food then.

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