Millions Of Americans Will Make This Financial Mistake #Finance

so millions of Americans are about to fall into a trap and I do not want you to fall into this now what’s about to happen is we are about to go through the holiday shopping season it’s going to start in less than two days we’re going to be starting on Black Friday where

millions of people are going to go out there and shop at stores like Walmart and Target and Costco and many online retailers well here’s the issue all these retailers are going to try to do whatever they can get you sign up for a Credit card they get you to uh sign up for

something they just want to sell you something and they want to continue to sell even after you leave now today we’re going to talk about something it’s called buy now pay later it’s more popular than ever before but it’s actually going to cost you more than you think many

experts say this is what is going to cause millions of people to panic in the next month month I’m going to explain what’s going on why you need to be well aware what buy now pay later is in my personal opinion there is a a use for it but the problem is most consumers don’t

understand how it works and that’s where they fall victim so I explain what’s going on I’ll do that in just a minute but all I ask is one thing takes two seconds go ahead hit that like button if you enjoy these daily updates and now let’s begin so let’s talk about buy

now pay later this article from the AP says buy now pay later is more popular than ever it can cost more than you think now I want to address this in just a moment but first I want to ask you one question who has ever used buy now pay later and what are your thoughts okay what are your thoughts on

this program now if you don’t know what buy now pay later is it’s simply a program where you can buy an item today and you can pay a little bit at a time okay over the next 4 weeks or 8 weeks or whatever it is every different program is different you got a firm you have you know Amazon

has used it before so again buy now pay later or bnpl is something that many companies are using many retailers are using that this year as well so keep that in mind now look at this right here it says buy now pay later use may rise this year for holiday shopping it says with

Credit card Interest Rates at a historic High consumers are likely to gravitate to lowcost Alternatives including potentially buy now pay later options now what you need to keep in mind is you go and put something on a Credit card now you may get

cash back you may get miles it may work out perfectly for you that’s just great but here’s the issue if you don’t pay that Credit card off in full by the end of the month you’ll be hit with interest some people will pay you know 13 14 15% others will pay 23

24 25% that’s a problem where you are paying 22% Plus on a purchase that you made there’s no discount there there’s no saving money so when a lot of people say oh I’m going put it on my Credit card because again I’m going to save money I I need to buy

today so I can save money but yet you put a purchase of let’s say a TV big screen TV you got let’s say $2 $3,000 in that you put that on your Credit card here’s the issue with that you put that on your Credit card and now you don’t pay it

off for let’s say a year well that TV that was discounted by like 5 to 10% but yet you just paid an additional 20% interest on top of that yeah it wasn’t a Savings you lost m money look at this right here it says a survey 73% of baby boomers plan to use buy now pay

later payment options during the holidays it says older consumers and those with higher Incomes are more likely than younger ones to use split payments this holiday season says a new survey results from global payment solution providers uh split it and fintech news outlets payments

reveals that nearly 3/4 73% of baby boomers are planed to use uh pay later options this year followed by 68% of gen xers and 65% of Millennials although they are famously budget conscious gen zers are the least likely generation to use pay later for uh holiday shopping this year with only 60%

planned to use the flexible payments to purchase gifts okay what you need to keep in mind is this buy now pay later is a great option if you have money coming in in the next few days next week next two weeks next month okay but if you don’t know when your next payment’s going to be when

a a lump sum’s coming in buy now pay later just doesn’t work because you’re going to have to make a quarter payment let’s say for the next 4 weeks or eight weeks or whatever the payment plan actually is that’s a problem now I want to show you something okay look at

this right here it says buy now pay later can be particularly appealing uh to Consumers who have low Credit scores or no Credit history such as a younger shopper because most of the companies providing the service run only soft Credit checks and

don’t report the Loans and payment histories to the Credit bureaus that’s one of the benefits is if you don’t have any Credit whatsoever you have no Credit history or your Credit score is

absolutely terrible then a buy now pay lader option is great but here’s what I want you to understand I don’t want you to fall for this trap because this is what happens so many times people will present you with two options you can pay with a Credit card or we got this

buy now pay later option okay the buy now pay later option means you’re going to pay a certain portion you’re going pay usually a quarter uh quarter payment over the next four weeks over the next eight weeks okay it’s usually split up in that way now here’s the problem if

you don’t make the payment they don’t come after you they don’t come after you and ding your Credit score right that’s that’s not really a big thing they’re not coming after you and asking for those clothes and the tools and that TV that you just

bought they’re not asking for that back okay what they’re doing is well for one they want you to pay it but this is why they hit you with those the interest they hit you with those fees if you do not make the payment or you cannot make the payment you’ll be hit with a a very

exorbitant fee okay it’s it’s going to be much more than you can really afford it’s not going to be worth getting that 10% off that shirt okay that 10% 15 25% off that tool okay saving $100 on that television isn’t going to be worth it because they’re going to come

after you and they’re going to ask you to pay a higher amount they’re going to keep coming okay they will keep coming that’s where they’re making their money now here’s the other thing there’s going to be options you can pay with cash you can pay with a debit

card you can pay with our Credit card you can apply here or buy now pay later here’s the way they position this pay with a Credit card you have to pay let’s say 20% interest but you do buy now pay later it’s 0% interest that sounds very appealing

but again this is where many people fall into this trap that they think okay it’s buy out pay later 0% interest cool I’ll pay that off within the end of the month no here’s the issue you don’t make the first payment in the first week or two weeks later guess what you

don’t get the 0% option no you’re can be hit with a fee you’re can be hit with interest okay they’re going to come after you that’s the issue and so I bring this to your attention simply because I know a lot of people have been getting a lot of messages uh on uh here

on YouTube been getting a lot of emails as well people are saying that this is the best time to use buy now pay later honestly it’s it’s a good time if you are financially stable if you have a terrible Credit you don’t know if money’s coming in right maybe

you lost your job buying out pay later is not an option buying out pay later is not a good option it’s an option not a good one so we’ll see what happens moving forward but what I can tell you right now is a lot of of people plan on using buy now pay later and in my opinion this

isn’t the time because of there’s so many other uh economic issues that we are currently facing so if you guys have any questions regarding buy now pay later or just the economy in general let me know down in the comment section below but that is what we know as of today so again thank

you guys for watching consider subscribing and I’ll see you guys on the next one