The co-hosts of “The Big Money Show” discuss the purchase now, pay for subsequent spending options and the impact that this will now have on your credit scoring.
Small everyday purchases as a doordash meal can now be funded by Eat Now, pay for subsequent options – a practice that some experts consider “predatory”.
“You must make sense not to follow the desire to finance a TACO, okay? You must be an adult,” said career coach Ken Coleman “The Big Money Show,” Wednesday.
“It's a predator, and it will cause a lot of people in difficulty.”
Purchase risks now, pay later: “Ticket to over-dependent”, says Expert
Doordash and Klarna are now joining forces to extend the purchase now, pay for later consumers. (Reuters, Getty / Getty Images)
Experts in financial well-being constantly sound the alarm to consumers short of money, warning them of the devastating impact that this financial strategy could have on their credit scores, because some lenders will start to declare these loans to credit agencies.
Consumers may risk being affected by late costs and interest rates, similar to credit cards.
“So your sandwich could appear on your Fico score, especially if you pay it late,” said Jackie Deangelis of Fox Business'.
Experts warn the hidden purchase risks now, pay later
Major actors such as Affir, Afterpay and Klarna have increased significantly at a time when Americans continue to Fighting with persistent inflationHigh interest rate and student loan payments, which resumed in October 2023 after a break due to the Pandemic COVID-19.
Ramsey Solutions Personal Finance Expert and the co-host of `The Ramsey Show '', George Kamel, discusses the craze” Buy now, pay later “and the trend that celebrates the financial benefits of being childless.
The co-host of “The Big Money Show” Taylor Riggs offered a different perspective, suggesting The CEOs of this company have a “duty” To attract as many customers as they wish.
“Unfortunately for me, it always comes back to financial literacy-which I know so much about your heart of training to save now,” she told Coleman, who regularly offers financial advice to callors on “The Ramsey Show”.
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Coleman continued to come to the defense of financially “desperate” consumers, arguing that companies target “immature” customers.
“I am for American companies able to do what they want to do under the law. This is good. But always call that: it is predatory, and they know who their customers are,” concluded Coleman, “and I tell you, they talk about weak, immature and desperate people.”
Daniella Genovese de Fox Business contributed to this report.
