It's Been a Minute Brittany needs a couch. Should she buy now, pay later?
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May 26, 2025 Malcolm Harris, author of the insightful book 'Palo Alto,' explores the implications of Buy Now, Pay Later (BNPL) services. He dives into why these loans have surged in popularity among young consumers, emphasizing their accessibility and hidden risks. The conversation reveals how easy credit can lead to debt traps and discusses the cultural shifts in attitudes toward purchasing and financial management. Harris also addresses the evolving landscape of consumer credit and the historical context of lifestyle subsidies in our tech-driven world.
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Brittany's Couch Purchase Dilemma
- Brittany needed a new couch but hesitated to pay $4,000 upfront with a credit card.
- She discovered buy now, pay later (BNPL) options like Klarna, Affirm, or Afterpay that split payments into installments.
Understanding BNPL Popularity and Risks
- Buy Now, Pay Later loans have low barriers and are popular with young people and those with poor credit.
- These services target users with personalized data to encourage impulse buying and spending.
BNPL Mimics Banks and Grows Loyalty
- BNPL services offer physical cards and tap to pay for brick-and-mortar purchases, mimicking banks.
- Users often stick with BNPL because it feels easier and more familiar than credit cards.
