There’s a bunch of bs predatory services that will let you finance literally every purchase. There’s a picture of someone “finally” paying off their $1.50 Costco hotdog after like 4 payments.
Those are usually interest free services. The company selling you the product pays the fee. Which means the fee is baked into every product.
But also it’s a way to increase sales, otherwise they wouldn’t offer it. Not sure why the fuck they’re offering it on fast food in the US though, it’s meant for stuff that cost a bit more than you could afford right away in one payment but won’t make you destitute to pay in 3. E.g when I bought a bicycle, I bought a slightly nicer one than I had spare cash for, but paid the exact price over 3 months, not a cent extra. Not with Klarna, but similar service in my country.
Until you forget a single payment… then you’ll get retroactive interest (back to the day of your purchase) at a very high percent, as well as other fees.
I’m sure you could, but with financial literacy where it is, I doubt even automating it at a mid sized scale would be enough for them to cut back on lending.
There’s a bunch of bs predatory services that will let you finance literally every purchase. There’s a picture of someone “finally” paying off their $1.50 Costco hotdog after like 4 payments.
Okay, well the interest goes to the poor, entreprenourial small business owner who made your burrito, right?
Right?
Those are usually interest free services. The company selling you the product pays the fee. Which means the fee is baked into every product.
But also it’s a way to increase sales, otherwise they wouldn’t offer it. Not sure why the fuck they’re offering it on fast food in the US though, it’s meant for stuff that cost a bit more than you could afford right away in one payment but won’t make you destitute to pay in 3. E.g when I bought a bicycle, I bought a slightly nicer one than I had spare cash for, but paid the exact price over 3 months, not a cent extra. Not with Klarna, but similar service in my country.
Oh, there IS interest
Until you forget a single payment… then you’ll get retroactive interest (back to the day of your purchase) at a very high percent, as well as other fees.
Ah, maybe in the US. This wouldn’t fly here.
I would like to finance 1 burrito, please.
If they have no minimum then you can totally make it cost them money
I’m sure you could, but with financial literacy where it is, I doubt even automating it at a mid sized scale would be enough for them to cut back on lending.