Millennials and Gen Z Are Hooked on a $46 Billion Shopping App

[Martin@AS Financial]

Interesting report from Bloomberg on Klarna.

"The “buy now, pay later” craze is troubling financial regulators. Speaking to some Klarna users on TikTok helps explain why."

https://www.bloomberg.com/news/artic...premium-europe

[northernladuk]

Any chance of a link not behind a paywall? Most of us here aren't rich enough to have a Bloomberg subscription.

[Martin@AS Financial]

Ah apologies - I don't have a Bloomberg account either but the link works all ok when I click on it.

I think they limit the amount of articles you can look at per month though.

[mattster]

At first glance this doesn't look much different to a credit card?

[northernladuk]

At first glance this doesn't look much different to a credit card?

That was my first through. We were hooked (well some of us) on credit cards back in the day, particularly transferring to new cards when the 0% balance transfers were around. It's just the same but digital no?

[_V_]

It's kind of an instant credit card agreement I think.

So it removes the time barrier for the Gen Z who think "I WANT THIS NOW!!!" and can't be bothered to fill in a credit card application.

Click, bought, delivered, debt is tomorrow's problem.

[DealorNoDeal]

Click, bought, delivered, debt is tomorrow's problem.

Well, if it's good enough for their Government...

[SueEllen]

The amounts are suppose to be less than a credit card. However due to the lack of regulation they can lend to young people who can't pay it back.

[northernladuk]

It's kind of an instant credit card agreement I think.

So it removes the time barrier for the Gen Z who think "I WANT THIS NOW!!!" and can't be bothered to fill in a credit card application.

Click, bought, delivered, debt is tomorrow's problem.

My lads mates all have leased cars, phones on contracts, watches on buy now pay later, rent their homes and through Klarna don't even own the clothes on their own backs. I do worry about them but then thinking back me and most of my mates spent most of my 20's and early 30's managing a 10k+ credit card debt so hardly one to lecture. Different methods, same problem. That said we had to be earning to get the credit. That doesn't seem to be a factor nowadays and the debt is starting earlier.

Question for me is at what point does this stop and realisation they need to own something kicks in or is that the major change, they will never need to? The credit cards were a temporary means to an end. Is the new way of thinking that you'll never need to own anything in the new world?

I guess them that are savvy enough will get through it, those that aren't won't. I don't think there will be much change from the old days in that respect.

[Fraidycat]

"You will own nothing and you will be happy" is now an internet meme after it was said at the world economic forum a few years ago.

The most important thing is to own your house at some point.

Leasing cars over buying new isn't a huge saving, with interest rates so low. Compared to buying something older, thats where the savings are.

Most people want the new shiny stuff. Makes them feel good and impresses similar minded people.