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

[Martin@AS Financial]

A CC is genuinely useful for careful spenders but yeah, not a bad point.

Definitely as it should offer protection for big ticket essential purchases and has the benefit of building your credit score if used correctly.

I've had a quick look to see if Klarna does this but could not find anything to confirm either way.

[NigelJK]

Question for me is at what point does this stop and realisation they need to own something

They think they do own it tho'.

Conversation with my step son:
Him: We've bought a new car
Me: Oh what is it?
Him: Citreon C4 <grinning> 71 plate
Me: Oh you got it one of those CPC hire things
Him: Yes
Me: You don't own it then and you didn't buy it.
Him: Sulks for few few hours

[WTFH]

So they're learning about debt and managing their finances like most of us had to as well. Or are they expecting some sort of bail out because it's not their fault and the concept of personal responsibility is a hate crime? Socialism should fix this.

Castration would do a better job of fixing it. Too many parents in the world.

[Jog On]

So they're learning about debt and managing their finances like most of us had to as well. Or are they expecting some sort of bail out because it's not their fault and the concept of personal responsibility is a hate crime? Socialism should fix this.

[OwlHoot]

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

Great news - A whole new generation who are even bigger spendthrifts than me. Can only help improve my mediocre credit rating!

[mattster]

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.

Presumably there's some sort of sign up process to this new thing as well, and you can get a credit card fairly quickly if you want one.. Not a lot of moral outrage here, at least beyond what was already possible through more traditional credit. My flatmate at uni went bankrupt over about £20k of CC debt, and this was 30 years ago (he thought that was a right result and a stroke of genius when he did it). They've been throwing the credit around very generously for quite a while.

[Andy2]

What if you buy clothes on this app and can't pay
will they come to your house and strip you

[d000hg]

I am quite grateful I grew up in an era when getting a loan or credit card was nigh on impossible and you had to go to a bank for an interview and fill in a 50 page paper form.

Otherwise in my early 20's I would have bought everything I saw.

A CC is genuinely useful for careful spenders but yeah, not a bad point.

[d000hg]

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

We aren't? About time CUK had a paywall to keep the riff-raff out.

[Fraidycat]

I am quite grateful I grew up in an era when getting a loan or credit card was nigh on impossible and you had to go to a bank for an interview and fill in a 50 page paper form.

Otherwise in my early 20's I would have bought everything I saw.

My early 20s, i had give my dad everything i earned. As he was broke and in debt. He would also guilt me into giving him my uni grant check when i was a teenager

[_V_]

I am quite grateful I grew up in an era when getting a loan or credit card was nigh on impossible and you had to go to a bank for an interview and fill in a 50 page paper form.

Otherwise in my early 20's I would have bought everything I saw.

[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.

[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.

[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.

[DealorNoDeal]

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

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