BluePeriod_ t1_j8o1hu3 wrote
I’m pretty excited for this. I know pay in 4 systems get a bad rep and understandably so, but if used wisely is can be a massive help.
For example, my microwave died and I didn’t want to drop all that $500 at once and I didn’t want to carry a balance on my credit card so I paid for it on my pay day using Pay in 4 with another system and it worked out.
Another was with my car insurance. There’s a $430 discount for paying the premium up front vs monthly. So I just threw the whole thing on Pay in 4 and got the discounted rate.
wadonious t1_j8o2386 wrote
Might be obvious, but these systems are only a problem if you buy things you can’t afford, just like a credit card. But it’s nefarious because it tricks people into buying things they can’t afford
BluePeriod_ t1_j8o2f55 wrote
Yeah. It makes me sad too because it’s like - a fun thing here and there? Fine. But I work for a bank and I’ve seen some accounts that have a LONG series of purchases from Zip/Klarna/PayPal installments etc. Like “entire paycheck is pretty much gone” amounts. It’s an easy pit to fall into.
rouxcifer4 t1_j8pyu5t wrote
I’m an underwriter and see the same thing. It’s really sad. And I even use Afterpay and Klarna, but keep it limited to one or two lines at a time.
I had one applicant have over 27 payments to different buy now pay later companies in one week.
FloydMcScroops t1_j8q23mu wrote
Still, at the heart of it, needing to offer deferred payments and credit to make a purchase achievable speaks to how broken the system is. Wages are not at the same levels of inflated costs of goods. Costs of good just keeps increasing due to the lessened blow of payment options. This isn’t a nice solution, it’s economic manipulation and preying upon buyers with poor self control.
whodiditifnotme t1_j8q6xco wrote
And then there is will of folks like me who take the 0% interest and make 3.8% on the rest for abtrottet month or three.
nickolove11xk t1_j8qkqb1 wrote
Exactly. There is nothing wrong to me for using any of apples 0% payment plans. Why would I pay upfront for a laptop I need. Some people out there would tell me to pay off my car early and not understand im not paying off a 0% loan.
R_Meyer1 t1_j8ogi1l wrote
Do you know what’s also obvious you or anybody else is not force to use it.
wadonious t1_j8ojhhf wrote
Thank god, i totally thought apple was going to forcibly remove all other methods of payment
yaboyebeatz t1_j8o67q5 wrote
$500 for a microwave bro??
BluePeriod_ t1_j8o6s2f wrote
I know, right? But it’s for a home of 5 people and it’s above range with exhaust fan and a bunch of other stuff. The one installed before came with the house and had been there since 2001 so fingers crossed this lasts as long.
yaboyebeatz t1_j8obe4r wrote
Most definitely, good luck man!
Why_T t1_j8rtw6q wrote
My first thought was like, dude microwaves are 49 bucks at Wally World. But then I remembered how much I paid for my over range with all the upgrades.
Diegobyte t1_j8o82nl wrote
Yah microwaves aren’t really cheap
electric_medicine t1_j8oa3ci wrote
When I moved in with my fiancé a couple of months ago, we didn't have a stove (or anything, really) yet moving out of our parents places. Bought the cheapest store-brand microwave from an electronics store, $140. And for $140, it's really not doing a great job of being a microwave, or an oven with the oven function, honestly. But it gets the job done and we'll buy a more proper microwave when it dies (which will probably be a couple of months after the warranty runs out).
Diegobyte t1_j8oabfi wrote
I went through the same thing 8 years ago in an apartment. Figured microwaves were like 40 bucks. Well they aren’t. We didn’t even get one and actually liked it. But it would be hard without a stove lol
electric_medicine t1_j8od9zl wrote
Thankfully, we were able to put in our brand new induction stovetop 2 weeks ago. I did not cheap out on that, and I'm glad I didn't. This thing boils water in 30 seconds - hell yeah!
Diegobyte t1_j8o80rv wrote
My chase card lets me turn anything into pay in 4. Pretty nifty
liuhanshu2000 t1_j8oi9fm wrote
That has a flat fee though, Apple doesn’t charge anything
Diegobyte t1_j8oiqh6 wrote
Oh I haven’t used it yet I didn’t realize it had a fee. Kind of sounds like interest lmao
liuhanshu2000 t1_j8oiz2p wrote
Yeah it’s a little scammy that they advertise “no interest” and then charge you a fee (based on how much you’ve spent, split evenly over your monthly payment, so exactly like an interest)
Diegobyte t1_j8oj4ys wrote
I still think it’s cool when you can do some of this stuff on the bank side so it opens up a lot of flexibility.
I just say I’ve been using my Apple Card more and more for online purchases. It’s just so easy
Justagreewithme t1_j8pgomb wrote
My critique would be, in all your examples, you’re already overextended. If you are an adult and can’t afford to just pay any of those things off in full at the time, then you are already in a very bad position financially. The people that are going to use this, are those in financial hardships and as such are disproportionately more likely to make poor money decisions and not see the risks, making their situation much worse.
BluePeriod_ t1_j8pq1dj wrote
Your critique is completely valid, and I thank you for approaching it from a very mature standpoint. The truth is, I am not doing so hot. I’m trying to save as much as I can, times are tough, and my household is disproportionately reliant on me. This is only temporary, but I am doing the best I can.
My parents were bankers, so they taught me all about predatory loans early. While it’s not perfect, the pay in 4 option for me is working because it allows me to offset the high cost these unexpected necessities without falling into the trappings of a high interest loan that would be impossible to pay back or dipping into my savings. It’s the best of a bad situation and the most affordable in terms of staying liquid. Especially with all the sudden costs that came up recently.
To be clear, I don’t want my initial comment to serve as an endorsement for these type of products, I’m only relaying that it’s working for me in my very specific situation. I would never particularly recommend them to anyone, but if hard-pressed, I would absolutely recommend it as an alternative to a predatory high interest loan depending on their own circumstances.
0000GKP t1_j8rkyd8 wrote
>For example, my microwave died and I didn’t want to drop all that $500 at once and I didn’t want to carry a balance on my credit card so I paid for it on my pay day using Pay in 4 with another system and it worked out.
>
>Another was with my car insurance. There’s a $430 discount for paying the premium up front vs monthly. So I just threw the whole thing on Pay in 4 and got the discounted rate.
Budgeting and saving take care of both of these.
I have a "home" category in my savings account. I throw a few dollars in there every month. There's enough to cover new appliances if they break.
I already know the annual premium for my car insurance is $1400. 1400/12 = $116, so that's how much I save into my car insurance category every month.
Early-Abroad-3771 t1_j8t25rm wrote
no wait the car insurance BNPL is wicked smart tho, I just paid for my car insurance up front for the first time and saved bank, but it hurt a little to watch 1k walk out of my account. throwing that bill on a pay in 4 is super smart, lmk if you’ve got any other savvy tips like that
leavin_marks t1_j8qa5v4 wrote
Some top of the line microwave lol.
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