The Buy Now Pay Later "Scam" (Explained)

Buy Now, Pay Later usage has been increasing A TON over the past few years. Just about every retailer now offers some sort of Buy Now Pay Later checkout plan these days, and that might be a big problem. So with the increased usage, it’s important to understand how Buy Now, Pay Later loans are structured and how Buy Now Pay Later companies actually make money from offering these plans.

What started out as a way to split a purchase into smaller interest-free payments has now turned into extreme examples like 60% of concert goers financing their tickets. Even the food delivery service DoorDash has now partnered with Klarna to offer Buy Now, Pay Later for its customers. Other BNPL companies like Affirm and Afterpay are also finding new ways to make a lot of money from these payment plans.

I can understand how Buy Now Pay Later can be helpful in certain situations for essential items in between paychecks. But have these services gone too far? Known as Phantom Debt, BNPL is not as easily tracked compared to other forms of debt like credit cards. So in this video, we’ll go over when to use BNPL, as well as some other alternatives that might be better!


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CHAPTERS:
0:00 - Start Here
1:10 - How Buy Now, Pay Later Works
2:33 - BNPL Makes A LOT of Money
4:57 - The Problem with BNPL
8:36 - 3 Questions to Consider
9:33 - BNPL Alternatives


CHECK OUT SOME OF MY OTHER VIDEOS:
▶️ Budgeting For Beginners - How I Save $100K/yr:    • Budgeting For Beginners - How I Save $100K/yr  
▶️ How To Win The Credit Card Game in 2025:    • How To Win The Credit Card Game in 2025  
▶️ How We Got $40,000 of Free Travel (with Credit Cards):    • How We Got $40,000 of Free Travel (with Cr...  
▶️ What’s In My Wallet - Spring 2025 (My BEST Setup So Far):    • What’s In My Wallet - Spring 2025 (My BEST...  


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The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.