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May 21, 2024 | Buy Now Pay Later was Always a Bad Idea

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

Buy now, pay later (BNPL) is much worse than layaway plans of yore. Layaway plans allowed people to make installments toward an item and pick it up on the last payment. BNPL allows people to take the item with the promise to pay for it in installments over time. Cash-strapped consumers have been using BNPL to pay for meals, groceries, and rent. Every cycle, finance creates another half-baked scheme to book phantom profits, securitize junk and sell it to investors. As with other types of credit, delinquencies are leaping, and Wall Street is working hard to hide bodies now piling up.

Paulina Cachero, Bloomberg Personal Finance Reporter, and Paige Smith, Bloomberg Consumer Finance Reporter, join to discuss this weeks Big Take on Americans Are Racking Up ‘Phantom Debt’ Wall Street Can’t Track. Here is a direct video link.

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May 21st, 2024

Posted In: Juggling Dynamite

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