Americans Are Now Taking Out Loans To Buy Groceries Using Pay-Later Services

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[–][deleted] 5 insightful - 2 fun5 insightful - 1 fun6 insightful - 2 fun -  (9 children)

I've used services like that before, they're actually life savers. Zero interest loans, zero fees, and low monthly payments. It's a lot better than payday or car title loans.

Groceries... We just buy bare essentials now. Meat and something to make meat into a meal, some produce.

If anyone thought they'd bankrupt us into going vegan, they didn't, it just means meat gets top priority over everything else.

[–]HiddenFox 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (2 children)

When I see zero interest and zero fees I become very sceptical. Someone is paying somewhere along the way.

Most likely, right now the stores are giving discounts/payments to the company handing out the loans for bringing in large quantities of customers. But as more people start using this service the stores will adjust the price along the way. We will all be paying for the service, it will just be hidden in the price.

When we price things here in my businesses we total all the costs for the product and add on a set profit margin. If that comes out to $10 we then add another 2.5% for credit card fees at the end. Everyone pays that even if they pay cash. Point is if everyone paid in cash prices would be 2.5% cheaper. These free points and trips from the credit cards aren't really free.

[–][deleted] 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (1 child)

When I see zero interest and zero fees I become very sceptical. Someone is paying somewhere along the way.

I suspect it's because they get a peek at your bank account and collect data about spending habits to sell. Crypto.com does this too.

You're absolutely right, nothing is free. Someone said if you can't tell what the product the company is making money off of, then the product is you.

Still really handy imo and a better deal than alternatives.

[–]HiddenFox 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (0 children)

All good points. And I agree they are a better option the a payday loan.

[–][deleted] 2 insightful - 2 fun2 insightful - 1 fun3 insightful - 2 fun -  (5 children)

Interesting take.

[–][deleted] 2 insightful - 2 fun2 insightful - 1 fun3 insightful - 2 fun -  (4 children)

Which part? The bit about groceries I would hope is anti-inflationary. They raise prices, we reduce our food budget. To increase our food budget would validate the higher prices.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

I diddnt know there were pay later services with no fees and no interest. That sounds more like a person helping another person, rather than predatory pay day loans.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

. That sounds more like a person helping another person, rather than predatory pay day loans.

I think they're selling the banking information they obtain, it's not noble or anything.

[–]Dragonerne 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

Over how much time is it paid? 12 months?

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

I only did it twice, seeing if CBD helped when I really couldn't afford it and the payments get split into fourths.