Recent news reported that some buy now and pay later customers found that they can’t get the credit they need to buy stuff. That is new. Affirm, the buy now pay later provider, is reported that costs are up due to credit squeeze. Interest rate hikes and banking crises make borrowing costs higher.
Perhaps this is a blessing in disguise. Buy now and pay later is only good for customers who are disciplined just like zero-interest credit card balance transfer. Those enticing offers can lead to abuse and misuse of credits. A disciplined customer usually doesn’t land themselves in the situation that they need those offers. In another work, a customer who use those offers are likely experiencing lack of credit or savings. Probably they should not buy now and pay later because they might not be able to pay later.
So often, the news report that the consumers are the bright spot of the economy. It is our saving grace and the reason we are not in a recession. I am wondering who those consumers are. Apparently, this is a divided society. Some can’t pay their necessities such as food, shelter, or gas. Some keep shopping.
Anyhow, be very careful. Please do ask ourselves whether we are disciplined with money. Just like alcohol and gambling, if we can’t manage them well, perhaps we should stay away. Our brains are different. It is a very personal experience. Self-awareness is the key.
Again, only disciplined consumers should use buy now and pay later to their advantage. Otherwise, it is a losing game for the individual consumers.
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