Buy now, pay later firms such as Klarna face stricter controls
02/02/2021 | news | business | 618
The financial regulator says it would be easy for customers to build up unseen debts of £1,000.
1
02/02/2021 11:24:17 155 32
bbc
It`s so simple, if you can`t afford it don`t buy it, why try to buck this?
73
02/02/2021 11:40:55 7 16
bbc
I think the journalist who wrote this piece needs to familiarise themself with distance selling regulations....

"They have proved popular with younger shoppers - particular by offering a cheaper way to try before buying or returning."
81
02/02/2021 11:42:29 8 2
bbc
Because, by and large, people are a bunch of silly buckers?
126
02/02/2021 11:53:12 5 3
bbc
Have you ever taken out a loan to purchase a house?
151
02/02/2021 11:58:09 8 1
bbc
If you can afford it in split payments, then you can afford it. As most of the customers can.

As the article explains, this type of credit is unregulated. Therein lies the problem.

One improvement, to protect people from unregulated loans, is regulation.

People will always buy stuff. Some of them will always get into a debt problem.
297
02/02/2021 12:22:23 0 1
bbc
Life is far from being that simple for many people.
316
02/02/2021 12:34:01 4 3
bbc
So you've never had a mortgage?
2
02/02/2021 11:25:27 52 11
bbc
Buy now, pay later is how this country is run. Borrow, borrow, borrow, and let the next Chancellor/government/generation deal with the consequences.
89
02/02/2021 11:43:46 26 3
bbc
The "Never never" addiction. Buy now, pay later. Debt driven economic "growth" has nominlised spending well beyond one's abilities to pay. Sometimes it's necessary - but not for fast fashion, or the latest TV.
412
02/02/2021 13:29:21 0 0
bbc
Oh look, another armchair economist equating government policy to a household budget
3
02/02/2021 11:25:32 113 12
bbc
For over a decade we’ve had monetary policy from the Bank of England that has essentially discouraged saving through low interest rates and encouraged borrowing in turn, which will go a long way to explaining why private debt is building up.

This policy is unsustainable and needs to be subjected to better scrutiny, plus better education on finances is needed in the wider population.
48
02/02/2021 11:37:43 50 3
bbc
Agree with your points. The debt problem goes back c 40 years however and 'bad' financial habits precede the current generation; indeed they got many of them from their parents. Government have never properly introduced the educational classes we'd like as they are fundamentally at odds with their perceptions of what constitutes good economics; a Herculean effort to turn this thinking around.
205
02/02/2021 12:07:46 1 1
bbc
Another example of the UK's poor financial education. Over the last year some £200bn of personal debt has been repaid early and about £400bn of spare cash is floating in people's pockets waiting to be spent - all because of Covid.
Also, in my stocks & shares ISA over the last year I'm up 34% (in normal years it's 12%), why do you think government policy is discouraging me from saving?
209
02/02/2021 12:08:27 6 0
bbc
Agreed whole heartedly. The message people are getting is that it's bad to save, good to spend. This is all based on the "velocity of money" theory. The quicker it is turned over, the more VAT the government gets. Cash sitting in an account is wasted opportunity/income for the government so they are happy if you are in debit and still spending. Actually encouraging a debt ridden society.
251
02/02/2021 12:16:48 1 0
bbc
Overall, UK consumers borrowed MINUS £16.6 billion last year - on average we repaid far more than we borrowed.
Household savings are rising at £20 billion per month.

https://www.bankofengland.co.uk/statistics/money-and-credit/2020/december-2020
334
02/02/2021 12:40:04 1 0
bbc
I think your point is very apt - definitely seems like there's mixed messages.
347
02/02/2021 12:38:16 1 3
bbc
Who should scrutinise the Bank of England? And who should scrutnise them?

Also while education is important it is not the cause of, or the solution to everything.
537
02/02/2021 19:23:16 0 1
bbc
Nobody is forced into borrowing too much.
539
02/02/2021 19:26:00 1 0
bbc
School financial mngt is essential.
I cannot believe how many people I see with things they dont need, but want.
If we can change the relationship between need and want, we may succeed.
4
02/02/2021 11:23:48 91 21
bbc
Can't afford do NOT buy it, simple really, then you don't have any debt.
16
02/02/2021 11:29:21 48 27
bbc
Indeed.

But then the whole capitalist system based on burgeoning consumption collapses.

Not before time!
77
Loz
02/02/2021 11:41:53 20 4
bbc
This is such nonsense. I needed a new mattress a few years ago, and couldn't afford to pay for one outright so used Klarna.

Should I have saved for a year and slept on the floor?

The world isn't binary, some people need to spread the cost of essentials. Some people don't earn enough to build up a safety net.
135
02/02/2021 11:54:02 9 3
bbc
Too simplistic. 'Sophie' was buying clothes & only come unstuck when she was made redundant - at one point she could afford the clothes, then couldn't. Not all these companies are selling designer fashions. Trying to live debt free is extremely difficult - no mortgage, no overdraft etc. Agree that unnecessary debt is a bad thing, but sometimes it's unavoidable, plus we're all individuals.
354
02/02/2021 12:40:31 5 1
bbc
You're assuming people only buy things they want, and never things they need. Trying to simplify everything that way indicates only the avoidance of more complex thinking.
616
03/02/2021 21:44:46 0 0
bbc
Do you own your home? If so I guess you bought it outright in cash and had no need for a mortgage? Do you own a vehicle? Did you buy it out right? Never ordered from a catalogue?
5
02/02/2021 11:26:12 18 14
bbc
These "buy now, pay later" offers are used when buying online on a web site.

You can't use them in a shop - so why is there a picture of someone using contactless payment to illustrate this news item ?
24
02/02/2021 11:30:50 10 7
bbc
Precisely because you *can* use BNPL in stores.
432
02/02/2021 13:44:31 0 0
bbc
You can use buy now pay later in a shop, it was common in furniture stores at one time (and may still be). And they may be interest free if you remember to make the first payment on time, but very expensive otherwise.
6
02/02/2021 11:26:36 36 5
bbc
Buy now, pay later firms such as Klarna face stricter controls....Cant happen soon enough as people already in debt are adding more and again it's directly targeted at the poorest and most vulnerable people of society. The deals are a rip off with only one winner and that's the like of Klarna. They are no better than pay-day lenders.
7
02/02/2021 11:26:46 247 17
bbc
We need to educate people, possibly at a secondary school age to learn to live within their means and budget their money. Living in debt and in an overdraft needs to be hugely discouraged.
30
02/02/2021 11:32:52 81 104
bbc
Or ensure that the lowest wage is sufficient to cover basic needs, With rents at over £1000 where I live there not much left for anyone on minimum wage.
69
02/02/2021 11:40:20 19 19
bbc
Teaching kids to be finance savvy probably when their parents aren't, and their financial problems are always someone else's fault ha ha ha ha, even our government can't keep control of its finances, it's a crazy world we live in ??
133
02/02/2021 11:53:46 15 10
bbc
Used to think this soooo much. But then I read Rich Dad Poor Dad and it makes great point that financial literacy results in rich people not making as much money. There will never be an incentive for schools to teach kids about money issues.
168
02/02/2021 12:01:12 26 16
bbc
Indeed. Instead of brainwashing them with woke/environment tosh.
170
02/02/2021 12:01:19 13 31
bbc
What a load of rubbish

Remove credit and you remove so much money from the economy

What about all the jobs building cars that you don't want people to buy on credit?
Should those who can't buy a house outright all rent?
What about all the jobs at banks and finance companies?
What about all the places people these jobs spend money

So called living within means just means the majority being poor.
181
02/02/2021 12:03:25 18 2
bbc
Who's going to educate ... the government ? The same governments that have been spending beyond their means for years and actively encouraging the public to do likewise largely so they can claim the apparent increased prosperity is all down to their policies ... when in fact much of it has simply been paid for with ever increasing levels of national debt. 35% of GDP back in 2007 ... now over 100%.
211
02/02/2021 12:08:39 8 4
bbc
"Living in debt and in an overdraft needs to be hugely discouraged"

it does, but for many it is the only option on the table.
241
02/02/2021 12:14:58 9 1
bbc
Pretty much what we have been setup for; study, debt, debt to allow even more debt, debt to buy a home, debt until retirement, downsize to pay off debt, die.
294
02/02/2021 12:17:29 4 0
bbc
But then they are encouraged to take out a mortgage as a better alternative to paying rent.

The debt problem has as much to do with lenders as those who borrow. Banning TV load ads and zero deposit finance, and regulating interest rates and defaulting procedures would be a good start.
309
02/02/2021 12:28:31 1 0
bbc
(not directly aimed at you Niall, just want to add to the discussion)
A bit similar to defund the police; teachers shouldn't be expected to academically educate children AND provide childcare AND socially educate them AND morally educate them AND financially educate them. When do some of these responsibilities get placed onto parents?
398
02/02/2021 13:21:50 3 0
bbc
I learnt that at a very early age, lost my Dad when I was 8, seeing my Mam struggle to bring 4 of us up has never left me. Always saved to buy items. Glad I'm now in a position to not have to worry about where the next pound comes from.
475
02/02/2021 15:32:12 2 0
bbc
It's nothing at all to do with Education.... 50 years ago people weren't 'Educated-Financially', there just wasn't a thousand ways of borrowing without a guarantor or a bank sitting you down face-face and making sure you understood the implications of taking out a loan. Today it all has to be quick, quick...easy...
501
02/02/2021 17:40:17 0 0
bbc
or
or
or
or we could just stop advertising cr*p
506
02/02/2021 17:55:05 1 0
bbc
My neighbour is an accountant and has been saying this for years. Schools need to educate the kids, the value of saving to buy. And also the damage debt rakes on your life in the future. Does not wash away. Is a constant mark.
8
02/02/2021 11:26:54 95 10
bbc
"Buy now, pay later firms" - what, like a Credit Card you mean ?
14
02/02/2021 11:28:26 46 7
bbc
Without the massive interest rates charged by credit cards
29
02/02/2021 11:32:33 8 4
bbc
Credit cards are not the same - you CAN use them to consolidate payments into a single amount paid off in full each month & that way they cost you nothing.

The issue here is people piling debt on debt & for that reason the likes of Klarna should be forbidden to take on customers who have significant debt (bank overdraft, unpaid utility bill, are paying interest on credit card etc)
55
02/02/2021 11:38:08 6 1
bbc
After reading the article it seems these cards are not regulated in the same way as credit cards but maybe they should
155
02/02/2021 11:59:22 1 0
bbc
Almost like a credit card, regulated by the FCA, with the difference being the lack of regulation. As the article explains. A little past the headline.
394
02/02/2021 13:00:05 4 0
bbc
There is nothing wrong with credit cards, only how they are used by some people.

I buy everything on a credit card, pay the balance in full every month and get £300-400 year in cashback. And even with using the credit facility they can be used sensibly. The 'pay day' loan companies are very different.
9
02/02/2021 11:26:59 5 11
bbc
But how will I get the latest phone?
17
02/02/2021 11:29:26 2 2
bbc
whats wrong with the red call box?
35
02/02/2021 11:33:47 0 1
bbc
Who cares. Keep using the one you have at the moment or do without, as every human did until very recently.
10
02/02/2021 11:27:26 65 11
bbc
live within your means and you cant go wrong. i always have and yes there are times when i would love things financialy to be better but a reality check is needed for some. not all though. some are sensible and pay on time others dont.
153
02/02/2021 11:58:51 46 17
bbc
Those that don't then wail that they want others to pay for their kids food.
162
02/02/2021 12:00:42 5 1
bbc
Living with their means, as the example in the article, until something changes and the "means" becomes a smaller number.

As these debts are unregulated, there is a problem. Regulation would address the most-obvious problem.
196
02/02/2021 12:06:53 0 5
bbc
what does "living within your means" mean?

If I earn have £1.5k left after all bills per month will you allow me to buy a car for £300 per month? I think I can afford that, don't you?
11
02/02/2021 11:27:47 13 5
bbc
Klarna Wonga Wonga Klarna

All the same to me. Catch the unwary, make an absolute out of their misery and make sure you've hidden the massive proceeds, and yourself, out of reach before the regulator kicks the door down.
275
02/02/2021 12:21:55 1 2
bbc
Klarna and Wonga are very, very different.
437
02/02/2021 13:47:50 0 0
bbc
Many who use those places will already have a miserable life. But the regulator won't be "kicking the door down" as they operate within the law. Which is part of the problem.
12
Dee
02/02/2021 11:28:00 12 9
bbc
Any chance of cracking down on those who borrow shares to pay later, at the cost of businesses and employment? Or are we pretending institutional shorting is just a US problem while the BBC peddles myths about redditors promoting silver at the behest of the shorting hedge funds.
60
02/02/2021 11:38:47 5 3
bbc
Surely it would be simple to say you can’t trade a share you don’t own?
235
02/02/2021 12:12:59 0 0
bbc
"BBC peddles myths about redditors promoting silver at the behest of the shorting hedge funds"

Discounting your anti-BBC, do you really believe the SHORT SELLER wants to price to RISE, and are manipulating people to actively bankrupt the hedge funds?

Wow. Financial and other forms of illiteracy are rife.
13
02/02/2021 11:28:16 52 10
bbc
If you can't afford it don't buy it, old advice but still as true as it ever was......
22
02/02/2021 11:30:42 24 56
bbc
Some through no fault of their own can’t even afford food in the current climate , suggestions ?
75
Bob
02/02/2021 11:41:09 5 12
bbc
Yes, sound advice.

On this basis I am going to move out of my home and return my car.

Hopefully I will be able to drive again in a couple of years time, and I guess I'll have to live in it for a couple of decades too until I have enough cash for the house.
348
02/02/2021 12:38:19 5 1
bbc
Tell that to the HS2 committee.
405
02/02/2021 13:16:17 0 6
bbc
Likewise, if you have nothing useful to say, don't say it.
617
03/02/2021 21:48:22 0 0
bbc
Do you own your home? If so I take it you paid for it upfront in full and didn't get a mortgage to pay for it. If the latter then there is a word coming to mind and it begins with the letter "h".....
8
02/02/2021 11:26:54 95 10
bbc
"Buy now, pay later firms" - what, like a Credit Card you mean ?
14
02/02/2021 11:28:26 46 7
bbc
Without the massive interest rates charged by credit cards
220
02/02/2021 12:10:31 4 0
bbc
Interest rates on credit cards (if you don't pay the balance off every month) are massive. Credit cards are great for convenience, buyer protection etc, but anyone intentionally putting long-term debt on them is a fool.
15
02/02/2021 11:28:29 15 11
bbc
As opposed to the Government's policy of "Buy now, get someone else to pay later" ?
4
02/02/2021 11:23:48 91 21
bbc
Can't afford do NOT buy it, simple really, then you don't have any debt.
16
02/02/2021 11:29:21 48 27
bbc
Indeed.

But then the whole capitalist system based on burgeoning consumption collapses.

Not before time!
116
02/02/2021 11:50:40 7 1
bbc
You’ll probably get the usual responses saying “no one forces you to spend it” and “it’s the best system we’ve got”, but the reality is people are coerced into spending eventually.

It’s not in the government’s or business’ interest for people to be frugal. The system wouldn’t survive if everyone was a saver.

The “back in my day” thing is a myth, debt has been passed down for generations.
175
02/02/2021 12:02:46 3 2
bbc
yeah cos communism works so well doesn't it?
222
02/02/2021 12:10:37 5 0
bbc
Capitalism was the economic model developed in the eighteenth century to fund industrial development. It generally works well and has led to a reasonable level of prosperity in the world. You only have to look at the dire straights Communist countries got into to know that the communist system doesn't work. But now capitalism is associated with consumerism in people's minds. The two are different
355
02/02/2021 12:41:27 0 0
bbc
Which system do you want once the capitalist one collapses?
9
02/02/2021 11:26:59 5 11
bbc
But how will I get the latest phone?
17
02/02/2021 11:29:26 2 2
bbc
whats wrong with the red call box?
80
Hex
02/02/2021 11:42:13 1 1
bbc
Where you finding a red call box?!
88
02/02/2021 11:43:38 1 1
bbc
And how many of those are left?
They’re becoming obsolete, or at least where I live, they’re all gone
18
02/02/2021 11:29:26 9 2
bbc
People don't live within their means and companies take advantage of that.
Buy Now Pay Later - is a just glossy way for you to ultimately pay more instead of paying a more reasonable price had you the cash upfront anyway.
If you are offered credit/loans at a rate more than 10% - its not a good deal.
19
02/02/2021 11:29:46 40 5
bbc
Getting consumer credit is too easy. Make it hard like with mortgages and then the country will do well as people learn to earn and to save and live somewhere that they can afford.
Everything you buy online through eBay and Amazon they always ask you if you want a credit card. That needs to stop.
292
02/02/2021 12:27:51 13 0
bbc
The British economy is a consumer and service one, rather than an industrial one like most of the rest of Western Europe. Which is why our economy and employment is suffering more under lockdown. We make very little overall so just count the same money going around and around through restaurants and shops as 'Growth'. When that can't happen everything collapses.
418
02/02/2021 13:24:36 1 1
bbc
"Everything you buy online through eBay and Amazon they always ask you if you want a credit card. That needs to stop."

Never tried it myself but the smarter people could take the credit card, get the discount for doing so, and then never use it.
20
02/02/2021 11:29:59 3 2
bbc
"Estimates suggest £4 in every £100 currently spent in the UK uses buy now, pay later."

Spent where? Clothing retailers? All shops? Everywhere? I think more context is needed for this statement. I would suggest that credit buying (esp. using credit cards) may well account for significantly more than 4% of everything that is spent in the UK.
But 4% alone on these particular services seems high.
57
02/02/2021 11:38:39 3 1
bbc
Even the government are using buy now pay later ( well buy now, and make the people pay later).
78
02/02/2021 11:32:59 0 1
bbc
Online stores using Klarna. Google it to get more detail.
266
02/02/2021 12:19:46 0 0
bbc
Context: In the UK

Where did you get your figures?
21
02/02/2021 11:30:35 61 3
bbc
Financial self defence needs to be taught in schools from a very young age.
317
02/02/2021 12:34:08 14 11
bbc
Public schools are failing Britain’s youngsters. Speaking first hand, it’s a system where teachers are rewarded on ‘length of service’ rather than performance. It’s lead to all the talented young teachers jumping ship and the less talented teachers to stay as it’s a fairly stable job. There’s real stagnation in quality of teaching and a curriculum that is woefully outdated.
346
02/02/2021 12:37:38 10 0
bbc
Or by their parents... Heaven forbit parents should have some educational responsibility.
13
02/02/2021 11:28:16 52 10
bbc
If you can't afford it don't buy it, old advice but still as true as it ever was......
22
02/02/2021 11:30:42 24 56
bbc
Some through no fault of their own can’t even afford food in the current climate , suggestions ?
110
02/02/2021 11:48:59 4 11
bbc
Cracking question. History suggests Govt will 'look through' any inequality gap and point to their wonderful welfare policies (Universal Credit). An alternative approach (based on fears of civil unrest) would be a form of UBI (based on reduced working numbers). Depends on Parliament switching from neoclassical economics to Austrian or MMT thinking. Making benefits system fit for purpose a start.
164
02/02/2021 12:00:45 15 8
bbc
They can afford food, they just choose to spend their money (often "our" money) on other things, then stand around with their hands out expecting others to feed their kids.
517
02/02/2021 18:50:20 0 1
bbc
but you CANNOT buy food with KLARNA etc.
23
02/02/2021 11:30:46 9 7
bbc
The root of this problem is the inequality in society, and the lack of financial education. It would be more useful to teach good personal financial management in school than some other topics. At least regulating these firms is a good step.
34
02/02/2021 11:33:46 17 2
bbc
The root of this problem is that society has developed a "I want it and I want it NOW" mentality that is loved by companies like Apple, who can produce the must-have latest phone every six months at a ludicrous price. When I was young and skint, I simply didn't spend the money that I didn't have.
221
02/02/2021 12:10:35 0 0
bbc
Not sure where the inequality come from but lack of financial education in schools is an issue.
5
02/02/2021 11:26:12 18 14
bbc
These "buy now, pay later" offers are used when buying online on a web site.

You can't use them in a shop - so why is there a picture of someone using contactless payment to illustrate this news item ?
24
02/02/2021 11:30:50 10 7
bbc
Precisely because you *can* use BNPL in stores.
25
02/02/2021 11:31:25 5 3
bbc
Buy now, pay later services were used by five million people in the UK for total sales of £2.7bn. The only winners are the likes of Klarna, Clearpay, and LayBuy. Young people have it tough enough without being saddle with debt and have debt collectors at the door and the additional burden of a CCJ. These companies need to be strictly regulated as they are no better than the pay-day lenders.
51
02/02/2021 11:37:53 1 2
bbc
How does regulation help if we're talking of a debt of £1,000 ? If you want to buy a sofa with interest-free credit, and the shop says no, as it's not sure of your current or future credit worthiness, how would you take it ? I'd be interested to know the breakdown of the goods on which the £2.7bn was spent - all "need to have" white goods ?
26
02/02/2021 11:30:06 25 8
bbc
“ Fears over young shoppers' debts mean buy now, pay later firms such as Klarna will face more scrutiny by regulators.”

Are these the same young people you refer to in your other HYS article where they want to have reduced student debt payments?

Perhaps on reflection, the “root cause” is marketing and spending addiction, not Klarna?
68
02/02/2021 11:40:10 16 5
bbc
Plus an inability to budget and to prioritise spending - because no one teaches them.
208
02/02/2021 12:08:26 1 2
bbc
No, they are different people. Easy.

Every article that mentions money, some bright spark conflates "everyone that's not me" into their little group of "people I can attack without any basis whatsoever"
27
02/02/2021 11:32:14 24 5
bbc
Saw an add with a reflective APR of 78.9%. What the heck are people doing signing up for such rip off fees. Are they morons or just gullible idiots in not knowing what interest rates they are being fleeced of?
61
02/02/2021 11:38:48 13 2
bbc
I remember the results of a survey done about finance among samples of young adults a few years ago, and there was a significant minority who thought the bigger the APR the better. Financial education in the UK is pants. Did you realise there are still people around who think saving in a bank's savings account offering 0.1% think they are doing the best they can!
219
02/02/2021 12:10:06 1 2
bbc
There are both types; financial illiteracy is commonplace.

There is also the reality that mainstream lenders do not lend to some borrowers, and their options are limited to extortionate APR or go without. Going without is not always viable if your kids need shoes.
28
02/02/2021 11:32:31 5 5
bbc
When you have a generation that is easily manipulating into buying worthless Gamestop shares on mass, then there is really no hope for them. The Klarnas of the world will suck the blood out of them and the millenniums will present their necks with glee.
50
02/02/2021 11:37:48 0 2
bbc
Hardly! The trade in Gamestop shares has been blocked to ensure the big players don't lose out short selling them.

BTW something is worth what someone else is prepared to pay for it. See Tracy Emin works etc. I can get you 300 bricks from Wickes for a few quid...
65
02/02/2021 11:39:08 0 2
bbc
It might be a stereotype that young FOMO millennials are gullible and stupid....but it doesn’t make it untrue?
8
02/02/2021 11:26:54 95 10
bbc
"Buy now, pay later firms" - what, like a Credit Card you mean ?
29
02/02/2021 11:32:33 8 4
bbc
Credit cards are not the same - you CAN use them to consolidate payments into a single amount paid off in full each month & that way they cost you nothing.

The issue here is people piling debt on debt & for that reason the likes of Klarna should be forbidden to take on customers who have significant debt (bank overdraft, unpaid utility bill, are paying interest on credit card etc)
7
02/02/2021 11:26:46 247 17
bbc
We need to educate people, possibly at a secondary school age to learn to live within their means and budget their money. Living in debt and in an overdraft needs to be hugely discouraged.
30
02/02/2021 11:32:52 81 104
bbc
Or ensure that the lowest wage is sufficient to cover basic needs, With rents at over £1000 where I live there not much left for anyone on minimum wage.
142
02/02/2021 11:55:34 41 28
bbc
People on minimum wage shouldn't be living where rents are over £1,000.
185
02/02/2021 12:05:11 22 6
bbc
Yes, the cost of rentals is the biggest problem. Selling off social housing and preventing councils from using the money to replace the sold-off units was scandalous. Unfortunately the Conservative mantra of the "Property owning democracy" doesn't really work in a society where a large proportion of the population are working in minimum wage and unstable service industries.
189
02/02/2021 12:05:28 20 8
bbc
This "lowest wage needs to cover basic needs" is nonsense and not the correct place from which to base change. Pushing at the low wage all the time is losing jobs in the UK. When you push up the "low wage" everything the person on this wage would buy ,goes up in price. The end up no better off! Better to educate people in the fact that you should not but unless you can afford to. Simple.
195
02/02/2021 12:06:38 17 18
bbc
Maybe live somewhere cheaper. If you don't earn sufficiently more, then you simply cannot afford to live there, it's fairly simple with a brain
199
02/02/2021 12:02:35 12 11
bbc
Move somewhere cheaper.
353
02/02/2021 12:49:09 1 0
bbc
Would that stop people wanting things on credit?
370
02/02/2021 12:56:16 1 0
bbc
You want to move-you must have some money!
393
02/02/2021 13:18:52 0 0
bbc
What's your point exactly?
449
02/02/2021 14:20:31 1 0
bbc
Rent are only high because people earn so much. Housing is auctioned not bought related to the cost to build. All the upbid money goes to the land sellers and developers.

Raising wages especially at the bottom just raises housing prices as they bid up the lower end even more.
567
02/02/2021 21:25:04 0 1
bbc
The number of down votes against Outonabluesix’s observation about the impact of extraordinary high rents is very sad. It reflects badly on the selfishness of individuals who are so out of touch with the financial realities faced by many of today’s young people. It should be astonishing that people could be so non-empathetic; but I am not surprised. They belong to the me-me-me generation.
31
02/02/2021 11:33:11 2 4
bbc
Debt the only game left in UK Plc..
71
02/02/2021 11:40:35 0 1
bbc
Yeah ... when we have the national government keeping shaking the leaves from a non-existent money tree, it's no wonder some people try to follow suit.
32
02/02/2021 11:33:20 1 3
bbc
If you use Credit you are a mug. In these times, though, things may have changed. And the CCC's T&C's may change as the adverts say. Beware...
43
02/02/2021 11:36:03 0 4
bbc
Have you explained that to the govt? Their 2 trillion on the never never dwarfs anyone elses debt! (also hard to buy a house for cash these days..... mortgages are credit too)
138
02/02/2021 11:54:26 1 1
bbc
Credit used sensibly is fine. Being too afraid to use credit makes me think that you aren't as financially savvy as you believe you are
33
02/02/2021 11:33:21 3 3
bbc
Pure and simple if you cant pay for it leave it. Don't get into debt or defer payment.Debt doesn't go away and it follows you for all time.
42
02/02/2021 11:35:56 6 4
bbc
Just try doing that when your washing machine packs up or your car brakes have to be fixed.
84
02/02/2021 11:42:36 2 1
bbc
I am buying a bike at the moment on a 12 month interest free loan.

But - I have enough cash tucked away to buy the bike outright if I need too. The only reason I took the 12 month interest free loan was to keep my credit score up.

Same reason I use credit cards - I always pay in full every month.

I am lucky - I know this, but not servicing routine debt makes getting a mortage more difficult.
23
02/02/2021 11:30:46 9 7
bbc
The root of this problem is the inequality in society, and the lack of financial education. It would be more useful to teach good personal financial management in school than some other topics. At least regulating these firms is a good step.
34
02/02/2021 11:33:46 17 2
bbc
The root of this problem is that society has developed a "I want it and I want it NOW" mentality that is loved by companies like Apple, who can produce the must-have latest phone every six months at a ludicrous price. When I was young and skint, I simply didn't spend the money that I didn't have.
46
02/02/2021 11:36:50 3 1
bbc
Wish I could give this more than one upvote. Absolutely right.
62
02/02/2021 11:38:57 1 1
bbc
Neither did I, but then instant access to credit or 'easy' payments wasn't readily available. These days it's almost ubiquitous.
9
02/02/2021 11:26:59 5 11
bbc
But how will I get the latest phone?
35
02/02/2021 11:33:47 0 1
bbc
Who cares. Keep using the one you have at the moment or do without, as every human did until very recently.
94
02/02/2021 11:44:57 0 1
bbc
Do believe there are a few HYS commentators who might just benefit from looking up the word “sarcasm” https://dictionary.cambridge.org/dictionary/english/sarcasm
36
02/02/2021 11:33:54 7 6
bbc
How will people know I'm wealthy if I don't remortgage my one bedroom flat for a new iPhone?
37
02/02/2021 11:34:28 103 14
bbc
You just have to look at the 10 mile queue of white Audis and Mercedes at a McDonald's drive thru to understand the problem.
66
02/02/2021 11:39:23 39 12
bbc
Wow...

I'm in the 40% tax bracket and rather like the odd Big Mac. I drive a 14 year old Honda BTW.
83
02/02/2021 11:42:33 2 15
bbc
Please tell me what this means. I don't get it.
174
02/02/2021 12:02:43 10 7
bbc
Because McDonalds sells food on credit? Or you have a thing against people who drive german cars eating what they chose to eat?

Perhaps you could clarify your thoughts. Is this correct?
> only the poor eat from McDonalds
> they should not be allowed to drive german cars
> therefore debt is a problem

Remove your nonsense assumptions, and try again.
245
02/02/2021 12:15:52 10 1
bbc
If you need an explanation to what Barry means then you probably drive an Audi or Mercedes that has been seen in a queue at McDonalds before.

Let me spell it out for those of you still confused. Those people are clearly not very bright.
248
02/02/2021 12:16:11 9 2
bbc
All bought on the personal leasing system...
256
02/02/2021 12:17:35 0 3
bbc
Mmmm...............regulation, regulation, regulation.

How long before I have to consult a government website about what colour underpants I have to wear on a Wednesday?
269
02/02/2021 12:20:17 0 2
bbc
Every month or so, I join that queue. Won’t tell you what I drive.
345
02/02/2021 12:37:02 2 4
bbc
Barry Smith needs to learn that extrapolations of peoples financial stability cannot be made from a limited data set of observing the make and model of peoples cars at popular dining establishments.
351
02/02/2021 12:46:27 2 1
bbc
Black German cars matter
399
02/02/2021 13:07:41 1 3
bbc
Are you assuming that everyone who uses a McDonald's drive thru with a new car has it on finance?
489
02/02/2021 16:42:15 1 2
bbc
So driving a Merc means I can't enjoy a McD's that I can comfortably afford in my car which I can also comfortably afford?
508
02/02/2021 18:00:13 2 1
bbc
Barry Smith
I agree, as if we removed these vehicles from the road network, the H M Gov would still win, as roads would need less repair. And of course these vehicles are on the Glad & Sorry System, renamed Lease Hire. New name yet same problems.
510
02/02/2021 18:03:10 3 0
bbc
A lot of people have become trapped in the car leasing thing. At the end of the lease, they can't afford to buy out of it, so have to roll it over. And we all know they don't own the cars, they aren't impressing anyone. Particularly as German cars are now some of the most unreliable!
38
Ben
02/02/2021 11:34:40 24 2
bbc
I can see both sides of this. These programs do encourage you to take on debt, rather than only buying things as you can afford them. On the other hand if someone has no self control to buy a £20 top from BooHoo when they have no money, they're in for far more trouble in life than Klarna will ever contribute to. I agree we need far more practical lessons in schooling like financial responsibility.
39
02/02/2021 11:35:03 2 3
bbc
The problem is that if you pay for something on eBay etc it actually defaults to this buy now pay later. Paying now is made deliberately inconvenient. The amount of times I've sworn and had to go back to enter a credit card rather than "paypal credit" is amazing.
58
02/02/2021 11:38:40 1 1
bbc
Buy now pay later versus paying by credit card? Two sides of the same coin?
177
02/02/2021 12:02:54 0 0
bbc
I get an option card, paypal credit or paypal in 3. You need to pay attention.
40
02/02/2021 11:35:05 1 3
bbc
Stricter controls ? Should be outlawed !!

"neither a borrower nor lender be"
41
02/02/2021 11:35:40 4 7
bbc
The Conservatives run the country on debt, the chancellor who generate a huge chunk of our national debt is now to become a full time banker, the present chancellors a former banker and his former banker boss is about to become a BBC director. Yeah the kids need to control their debt better.
67
02/02/2021 11:39:53 5 2
bbc
Yes the government debt is growing massively as a consequence of the pandemic... but the government is borrowing at a rate of less than half a percent... these buy now pay later are charging anything from 50% apr to 1000% apr.
33
02/02/2021 11:33:21 3 3
bbc
Pure and simple if you cant pay for it leave it. Don't get into debt or defer payment.Debt doesn't go away and it follows you for all time.
42
02/02/2021 11:35:56 6 4
bbc
Just try doing that when your washing machine packs up or your car brakes have to be fixed.
74
02/02/2021 11:41:07 2 2
bbc
As I noted to Finkelstein earlier, I'd be interested to see the breakdown of the £2.7bn in terms of goods bought - what proportion do you think would be white goods, and what game stations, tv's, mobile phones and the like ?
109
02/02/2021 11:48:50 2 2
bbc
Prepare. Start putting some money into an emergency account every month. Then when something breaks you have the money.
518
02/02/2021 18:51:22 0 0
bbc
Prepare for the worst and try to put money aside for a rainy day.
32
02/02/2021 11:33:20 1 3
bbc
If you use Credit you are a mug. In these times, though, things may have changed. And the CCC's T&C's may change as the adverts say. Beware...
43
02/02/2021 11:36:03 0 4
bbc
Have you explained that to the govt? Their 2 trillion on the never never dwarfs anyone elses debt! (also hard to buy a house for cash these days..... mortgages are credit too)
44
02/02/2021 11:36:09 5 5
bbc
What has an image of a contactless payment being made got to do with the subject of the article. Usual BBC laziness.
333
02/02/2021 12:39:49 1 0
bbc
It's a photo to show people what shopping with a card looks like. Most articles have pictures.

What should the picture be? I like kittens.

Usual BBC-bashing? Are you forced onto this website?
45
02/02/2021 11:36:29 73 7
bbc
On Radio 4 this morning they were saying some people didn't realise they had to pay these debts. If you buy something, you know it needs paying for.

We now look to blame anyone for our own personal failings.

The only essentials in life are a roof over your head, food on the table and the means to function effectively (job, transport, clothes). Everything else is your choice.
206
02/02/2021 12:07:55 10 8
bbc
Maslow might shed some more light on your list.
34
02/02/2021 11:33:46 17 2
bbc
The root of this problem is that society has developed a "I want it and I want it NOW" mentality that is loved by companies like Apple, who can produce the must-have latest phone every six months at a ludicrous price. When I was young and skint, I simply didn't spend the money that I didn't have.
46
02/02/2021 11:36:50 3 1
bbc
Wish I could give this more than one upvote. Absolutely right.
47
02/02/2021 11:37:37 33 12
bbc
Anyone would think that lenders were forcing people to take their money. Exercise some self-control and stop blaming others for your profligacy!
453
02/02/2021 14:32:44 6 1
bbc
That's why it needs to be netter regulated. Free when its not free is the problem. "Here take the car".....you're 23 and its a Mercedes or BMW. You are not thinking of the consequences and ability to survive. Only the ability to look Amazeballs to your homeys (who actually "don't care if you drive a skateboard")
470
02/02/2021 15:16:44 1 0
bbc
But thats how all advertising works, finding the right psychological key to unlock your wallet
3
02/02/2021 11:25:32 113 12
bbc
For over a decade we’ve had monetary policy from the Bank of England that has essentially discouraged saving through low interest rates and encouraged borrowing in turn, which will go a long way to explaining why private debt is building up.

This policy is unsustainable and needs to be subjected to better scrutiny, plus better education on finances is needed in the wider population.
48
02/02/2021 11:37:43 50 3
bbc
Agree with your points. The debt problem goes back c 40 years however and 'bad' financial habits precede the current generation; indeed they got many of them from their parents. Government have never properly introduced the educational classes we'd like as they are fundamentally at odds with their perceptions of what constitutes good economics; a Herculean effort to turn this thinking around.
404
02/02/2021 13:24:27 8 0
bbc
I've worked in the consumer debt and benefit arenas and the financial awareness of people is staggeringly awful. People would rather pay £x a week for ten years at an insane interest rate than save for a couple of months and buy the item outright. Because it's wanted NOW.
574
02/02/2021 22:28:17 0 0
bbc
Longer than 40 years, The Great Depression of the 30's was started not by the Wall Street Crash, but by the access to easy credit of people taking loans and playing the stock market. The whole buy now pay later model is very old.
49
CT
02/02/2021 11:37:44 4 5
bbc
My oven failed, I brought a second hand one, for £10. I cost me £30 to repair. I am lucky, I have the skills to do this.

Our education system is seriously failing our younger generation. We, needs to discourage such a consumerist society, of buy new now.
76
02/02/2021 11:41:10 6 4
bbc
Why didn't you just fix the one you had.
167
02/02/2021 12:01:01 1 1
bbc
Trying to work out your point...we should all learn to fix ovens?
28
02/02/2021 11:32:31 5 5
bbc
When you have a generation that is easily manipulating into buying worthless Gamestop shares on mass, then there is really no hope for them. The Klarnas of the world will suck the blood out of them and the millenniums will present their necks with glee.
50
02/02/2021 11:37:48 0 2
bbc
Hardly! The trade in Gamestop shares has been blocked to ensure the big players don't lose out short selling them.

BTW something is worth what someone else is prepared to pay for it. See Tracy Emin works etc. I can get you 300 bricks from Wickes for a few quid...
122
02/02/2021 11:51:23 0 1
bbc
But no one was prepared to pay current prices for them until the milleniums were instructed on mass to buy them. And it wont be long before the same is true.
25
02/02/2021 11:31:25 5 3
bbc
Buy now, pay later services were used by five million people in the UK for total sales of £2.7bn. The only winners are the likes of Klarna, Clearpay, and LayBuy. Young people have it tough enough without being saddle with debt and have debt collectors at the door and the additional burden of a CCJ. These companies need to be strictly regulated as they are no better than the pay-day lenders.
51
02/02/2021 11:37:53 1 2
bbc
How does regulation help if we're talking of a debt of £1,000 ? If you want to buy a sofa with interest-free credit, and the shop says no, as it's not sure of your current or future credit worthiness, how would you take it ? I'd be interested to know the breakdown of the goods on which the £2.7bn was spent - all "need to have" white goods ?
262
02/02/2021 12:19:04 0 0
bbc
"I'd be interested to know the breakdown of the goods"

Why? So you can deem some things as undeserving, based on no information whatsoever, and then... then what?
52
02/02/2021 11:37:53 3 5
bbc
And then these companies stop supplying credit to these people.... Then the complaint is that their human right to borrow money is being ignored.....
82
02/02/2021 11:42:31 5 2
bbc
Is it a human right to borrow money you can’t afford?
252
02/02/2021 12:16:56 0 0
bbc
"their human right to borrow money"

Nobody believes that is in the Human Rights Act. People might say daft things because they are inarticulate, under-educated, or frustrated.
53
02/02/2021 11:37:57 4 2
bbc
Loan sharks are illegal. I see no reason why the government does not legislate and ensure that no credit cards can charge an APR more than 10% above base. If they need a higher rate to make a profit and deal with bad debt that is surely a function of mis-lending.
137
02/02/2021 11:54:23 0 1
bbc
Another example of the UK's poor financial education! While a bank loan might be 7%, a CC could be 21%. There's a reason. About 1/3 pay off in full each month incurring no interest, 1/3 are a problem defaulting, needing chasing, going bankrupt and cost the CC. So only 1/3 pay interest - on behalf of everyone, but that's their choice. Total interest paid for total amount borrowed is right at 7%
54
02/02/2021 11:38:04 4 4
bbc
This is a buy now pay later society, and we all subscribe. Cars on PCP. Electrical goods on credit. Everything bought on credit cards. Even mortgages. These are all buy now pay later. What's the difference? A PCP is a mortgage on a car. The cat has been out of the bag for years so it's a bit late to be finger pointing. We all want to own things we can't yet afford. End of.
87
02/02/2021 11:43:03 6 2
bbc
Education system (and parents!) need to start teaching kids that they need to try to live within their means !
172
02/02/2021 12:02:02 0 0
bbc
When did anyone buy a house without a mortgage? It's hardly a new thing
8
02/02/2021 11:26:54 95 10
bbc
"Buy now, pay later firms" - what, like a Credit Card you mean ?
55
02/02/2021 11:38:08 6 1
bbc
After reading the article it seems these cards are not regulated in the same way as credit cards but maybe they should
395
02/02/2021 13:02:04 0 0
bbc
The interest rates on credit cards are regulated only by competition in the market. But they are regulated in other ways e.g. the minimum payment and late payment charges.
56
RC
02/02/2021 11:38:32 3 2
bbc
The amount of debt people can amount in proportion to their income is completely disproportionate. Anyone who cannot properly assess the service users ability to repay should not be allowed to offer a Buy Now Pay Later service. An upper limit of 5% interest over BOE base rate would put halt to the bandit operators gallop.
270
02/02/2021 12:20:49 0 1
bbc
The interest rate on Klarna is zero percent. Did that solve the problem?
20
02/02/2021 11:29:59 3 2
bbc
"Estimates suggest £4 in every £100 currently spent in the UK uses buy now, pay later."

Spent where? Clothing retailers? All shops? Everywhere? I think more context is needed for this statement. I would suggest that credit buying (esp. using credit cards) may well account for significantly more than 4% of everything that is spent in the UK.
But 4% alone on these particular services seems high.
57
02/02/2021 11:38:39 3 1
bbc
Even the government are using buy now pay later ( well buy now, and make the people pay later).
39
02/02/2021 11:35:03 2 3
bbc
The problem is that if you pay for something on eBay etc it actually defaults to this buy now pay later. Paying now is made deliberately inconvenient. The amount of times I've sworn and had to go back to enter a credit card rather than "paypal credit" is amazing.
58
02/02/2021 11:38:40 1 1
bbc
Buy now pay later versus paying by credit card? Two sides of the same coin?
59
02/02/2021 11:38:42 7 3
bbc
Financial literacy, including debt, interest and budgeting, should replace some of the more theoretical maths on the national curriculum.
242
02/02/2021 12:15:00 2 0
bbc
Why replace? Why not incorporate or supplement?

Surely APR is a great example of why maths is useful.
12
Dee
02/02/2021 11:28:00 12 9
bbc
Any chance of cracking down on those who borrow shares to pay later, at the cost of businesses and employment? Or are we pretending institutional shorting is just a US problem while the BBC peddles myths about redditors promoting silver at the behest of the shorting hedge funds.
60
02/02/2021 11:38:47 5 3
bbc
Surely it would be simple to say you can’t trade a share you don’t own?
27
02/02/2021 11:32:14 24 5
bbc
Saw an add with a reflective APR of 78.9%. What the heck are people doing signing up for such rip off fees. Are they morons or just gullible idiots in not knowing what interest rates they are being fleeced of?
61
02/02/2021 11:38:48 13 2
bbc
I remember the results of a survey done about finance among samples of young adults a few years ago, and there was a significant minority who thought the bigger the APR the better. Financial education in the UK is pants. Did you realise there are still people around who think saving in a bank's savings account offering 0.1% think they are doing the best they can!
34
02/02/2021 11:33:46 17 2
bbc
The root of this problem is that society has developed a "I want it and I want it NOW" mentality that is loved by companies like Apple, who can produce the must-have latest phone every six months at a ludicrous price. When I was young and skint, I simply didn't spend the money that I didn't have.
62
02/02/2021 11:38:57 1 1
bbc
Neither did I, but then instant access to credit or 'easy' payments wasn't readily available. These days it's almost ubiquitous.
63
02/02/2021 11:39:04 11 2
bbc
Government monetary policies both Tory and Labour are the underlying problem and which there is no appetite to address.

Encouraging people to save with 0.01% interest and with an attitude savers are ‘fortunate not to be charged’ for holding money in bank accounts, sums up why we have a problem!
476
02/02/2021 15:36:38 0 0
bbc
If they increased interest rates to 10% it would be the people that put aside the money at 0.01% that would benefit, not those that moaned that there was no point.
64
02/02/2021 11:39:05 2 6
bbc
We could solve a lot of problems by making it illegal to reward savers with an interest rate less than 0.5% below the base rate or charge borrowers more than 0.5% above the base rate.

(And return the base rate to a reasonable figure - around 5%)
91
02/02/2021 11:44:32 0 1
bbc
Then the stockmarket would plunge, house prices would crash.
105
02/02/2021 11:47:47 0 1
bbc
Would be nice, but base rates are based on market conditions, not what we would like to see. You might bankrupt a few home owners, too, btw.
28
02/02/2021 11:32:31 5 5
bbc
When you have a generation that is easily manipulating into buying worthless Gamestop shares on mass, then there is really no hope for them. The Klarnas of the world will suck the blood out of them and the millenniums will present their necks with glee.
65
02/02/2021 11:39:08 0 2
bbc
It might be a stereotype that young FOMO millennials are gullible and stupid....but it doesn’t make it untrue?
37
02/02/2021 11:34:28 103 14
bbc
You just have to look at the 10 mile queue of white Audis and Mercedes at a McDonald's drive thru to understand the problem.
66
02/02/2021 11:39:23 39 12
bbc
Wow...

I'm in the 40% tax bracket and rather like the odd Big Mac. I drive a 14 year old Honda BTW.
255
02/02/2021 12:17:32 11 1
bbc
An awful lot of people driving the Mercs and Beemers aren't in that bracket, they just want to pretend they are.
41
02/02/2021 11:35:40 4 7
bbc
The Conservatives run the country on debt, the chancellor who generate a huge chunk of our national debt is now to become a full time banker, the present chancellors a former banker and his former banker boss is about to become a BBC director. Yeah the kids need to control their debt better.
67
02/02/2021 11:39:53 5 2
bbc
Yes the government debt is growing massively as a consequence of the pandemic... but the government is borrowing at a rate of less than half a percent... these buy now pay later are charging anything from 50% apr to 1000% apr.
276
02/02/2021 12:21:56 0 0
bbc
The debt was massive before the pandemic debt is encouraged in this country its been completely normalised as the banks expand their influence beyond banking.
26
02/02/2021 11:30:06 25 8
bbc
“ Fears over young shoppers' debts mean buy now, pay later firms such as Klarna will face more scrutiny by regulators.”

Are these the same young people you refer to in your other HYS article where they want to have reduced student debt payments?

Perhaps on reflection, the “root cause” is marketing and spending addiction, not Klarna?
68
02/02/2021 11:40:10 16 5
bbc
Plus an inability to budget and to prioritise spending - because no one teaches them.
128
02/02/2021 11:48:08 2 1
bbc
Yes this is very true. They never seem to “save” - it’s always living hand to mouth!!
438
02/02/2021 13:50:34 0 0
bbc
It is rather patronising to suggest people need to be taught to budget and prioritise spending. All many people need is self-discipline.
7
02/02/2021 11:26:46 247 17
bbc
We need to educate people, possibly at a secondary school age to learn to live within their means and budget their money. Living in debt and in an overdraft needs to be hugely discouraged.
69
02/02/2021 11:40:20 19 19
bbc
Teaching kids to be finance savvy probably when their parents aren't, and their financial problems are always someone else's fault ha ha ha ha, even our government can't keep control of its finances, it's a crazy world we live in ??
70
02/02/2021 11:40:25 26 2
bbc
Out of debt, out of danger. Sage advice from my Grandmother.
104
02/02/2021 11:47:46 14 3
bbc
My Granny and Mother too!! I read the other day 'eat the foods Granny would approve of and you won't go far wrong'. Full of wisdom!
121
02/02/2021 11:51:21 4 2
bbc
when was the last time government ever listened to SAGE advice ??
31
02/02/2021 11:33:11 2 4
bbc
Debt the only game left in UK Plc..
71
02/02/2021 11:40:35 0 1
bbc
Yeah ... when we have the national government keeping shaking the leaves from a non-existent money tree, it's no wonder some people try to follow suit.
146
02/02/2021 11:56:34 0 0
bbc
All a mess eh, that's how they like it..
72
02/02/2021 11:40:36 2 1
bbc
Recently used one of these schemes to avoid paying a driveway company upfront. The deal was 12mths interest free credit. When the work was done we paid the amount in full. Unfortunately, the Swedish bank in question has a low standard of customer service. Even though we have it in writing that the loan is paid off we do not have a receipt stating amounts. I expect problems in 12mths time. Beware!
1
02/02/2021 11:24:17 155 32
bbc
It`s so simple, if you can`t afford it don`t buy it, why try to buck this?
73
02/02/2021 11:40:55 7 16
bbc
I think the journalist who wrote this piece needs to familiarise themself with distance selling regulations....

"They have proved popular with younger shoppers - particular by offering a cheaper way to try before buying or returning."
171
02/02/2021 12:01:57 3 2
bbc
Perhaps you can familiarise yourself. There are no distant selling regulations since 2013 when it was replaced. Keep up!
42
02/02/2021 11:35:56 6 4
bbc
Just try doing that when your washing machine packs up or your car brakes have to be fixed.
74
02/02/2021 11:41:07 2 2
bbc
As I noted to Finkelstein earlier, I'd be interested to see the breakdown of the £2.7bn in terms of goods bought - what proportion do you think would be white goods, and what game stations, tv's, mobile phones and the like ?
13
02/02/2021 11:28:16 52 10
bbc
If you can't afford it don't buy it, old advice but still as true as it ever was......
75
Bob
02/02/2021 11:41:09 5 12
bbc
Yes, sound advice.

On this basis I am going to move out of my home and return my car.

Hopefully I will be able to drive again in a couple of years time, and I guess I'll have to live in it for a couple of decades too until I have enough cash for the house.
49
CT
02/02/2021 11:37:44 4 5
bbc
My oven failed, I brought a second hand one, for £10. I cost me £30 to repair. I am lucky, I have the skills to do this.

Our education system is seriously failing our younger generation. We, needs to discourage such a consumerist society, of buy new now.
76
02/02/2021 11:41:10 6 4
bbc
Why didn't you just fix the one you had.
4
02/02/2021 11:23:48 91 21
bbc
Can't afford do NOT buy it, simple really, then you don't have any debt.
77
Loz
02/02/2021 11:41:53 20 4
bbc
This is such nonsense. I needed a new mattress a few years ago, and couldn't afford to pay for one outright so used Klarna.

Should I have saved for a year and slept on the floor?

The world isn't binary, some people need to spread the cost of essentials. Some people don't earn enough to build up a safety net.
160
02/02/2021 12:00:13 4 5
bbc
Dare I asked what happened to your old mattress that suddenly rendered it unusable?
193
02/02/2021 12:06:11 5 5
bbc
No. You were supposed to save all the time BEFORE you needed a new matress. to cover just such eventualities. And you can buy a new double matress for about £100 if you need to. But saving is always a good idea.

Of course, there is a generation that like eating out and living on takaways as well as having the latest must-have phone. No furniture, but the latest iphone. Yep!
20
02/02/2021 11:29:59 3 2
bbc
"Estimates suggest £4 in every £100 currently spent in the UK uses buy now, pay later."

Spent where? Clothing retailers? All shops? Everywhere? I think more context is needed for this statement. I would suggest that credit buying (esp. using credit cards) may well account for significantly more than 4% of everything that is spent in the UK.
But 4% alone on these particular services seems high.
78
02/02/2021 11:32:59 0 1
bbc
Online stores using Klarna. Google it to get more detail.
79
02/02/2021 11:33:04 10 2
bbc
Didn't see that one coming, you mean make credit easy and people get into debt ?
Who would have known !
17
02/02/2021 11:29:26 2 2
bbc
whats wrong with the red call box?
80
Hex
02/02/2021 11:42:13 1 1
bbc
Where you finding a red call box?!
557
02/02/2021 20:52:50 0 0
bbc
we still have one in our village.there are also two in our city centre .
1
02/02/2021 11:24:17 155 32
bbc
It`s so simple, if you can`t afford it don`t buy it, why try to buck this?
81
02/02/2021 11:42:29 8 2
bbc
Because, by and large, people are a bunch of silly buckers?
52
02/02/2021 11:37:53 3 5
bbc
And then these companies stop supplying credit to these people.... Then the complaint is that their human right to borrow money is being ignored.....
82
02/02/2021 11:42:31 5 2
bbc
Is it a human right to borrow money you can’t afford?
112
02/02/2021 11:50:08 1 2
bbc
That's what they'd be claiming if no-one would lend them money.
37
02/02/2021 11:34:28 103 14
bbc
You just have to look at the 10 mile queue of white Audis and Mercedes at a McDonald's drive thru to understand the problem.
83
02/02/2021 11:42:33 2 15
bbc
Please tell me what this means. I don't get it.
118
02/02/2021 11:51:00 20 16
bbc
Andy, I have added notes to help:

You just have to look (involves using eyes) at the 10 mile (this is a distance) queue of white Audis and Mercedes (these are German cars) at a McDonald's drive thru (popular fast food chain take away via vehicle option) to understand the problem.
228
02/02/2021 12:12:03 4 0
bbc
Clowns with no money or on tap cant if won't cook
33
02/02/2021 11:33:21 3 3
bbc
Pure and simple if you cant pay for it leave it. Don't get into debt or defer payment.Debt doesn't go away and it follows you for all time.
84
02/02/2021 11:42:36 2 1
bbc
I am buying a bike at the moment on a 12 month interest free loan.

But - I have enough cash tucked away to buy the bike outright if I need too. The only reason I took the 12 month interest free loan was to keep my credit score up.

Same reason I use credit cards - I always pay in full every month.

I am lucky - I know this, but not servicing routine debt makes getting a mortage more difficult.
145
02/02/2021 11:56:23 2 1
bbc
Exactly how I use credit. Interest free deals are a way to make money if you actually have the cash to buy the item out right to begin with
85
02/02/2021 11:42:53 7 1
bbc
These types of borrowing seem to be for frivolous purchases by those without any sense of priorities. The gullible being treated as cash cows.
86
02/02/2021 11:42:54 41 9
bbc
Financial education in schools is the answer. Children should learn where money comes from (work, not benefits) and that nothing is 'free'. Budgeting, interest rates and savings etc. should all be taught. Many folk are clueless at present.
113
02/02/2021 11:50:19 19 3
bbc
My children have Financial Education lessons fortnightly at their secondary school.
127
02/02/2021 11:53:13 3 3
bbc
I think all students/ pupils should have this last year written off and start again in September... They could now be revising works done right up to the 1st lockdown and learning life skills, which would give them a major advantage in the future... instead we're already telling them they will be useless and earn less over their life time....... very positive!!
413
02/02/2021 13:30:40 1 0
bbc
I got as far as "Work, not benefits" before realising that this comment would provide little enlightenment
416
02/02/2021 13:31:57 0 0
bbc
No you miss the Neo liberal reduction of wages for 10 years that has collapsed family budgets to below those needed for Eating , Heating and a roof. Minimum wage is a joke and Universal Basic Income is now needed and a massive reduction in Immigration , as it allowed the neo libs to mine UK standard of living and opportunity. All masked by Meritocracy bunkem in a rigged against the masses system.
507
02/02/2021 17:57:15 0 0
bbc
not going to succeed - most kids don't give a monkeys.
54
02/02/2021 11:38:04 4 4
bbc
This is a buy now pay later society, and we all subscribe. Cars on PCP. Electrical goods on credit. Everything bought on credit cards. Even mortgages. These are all buy now pay later. What's the difference? A PCP is a mortgage on a car. The cat has been out of the bag for years so it's a bit late to be finger pointing. We all want to own things we can't yet afford. End of.
87
02/02/2021 11:43:03 6 2
bbc
Education system (and parents!) need to start teaching kids that they need to try to live within their means !
17
02/02/2021 11:29:26 2 2
bbc
whats wrong with the red call box?
88
02/02/2021 11:43:38 1 1
bbc
And how many of those are left?
They’re becoming obsolete, or at least where I live, they’re all gone
558
02/02/2021 20:53:40 0 0
bbc
no you need to look a bit . ive seen plenty around.
2
02/02/2021 11:25:27 52 11
bbc
Buy now, pay later is how this country is run. Borrow, borrow, borrow, and let the next Chancellor/government/generation deal with the consequences.
89
02/02/2021 11:43:46 26 3
bbc
The "Never never" addiction. Buy now, pay later. Debt driven economic "growth" has nominlised spending well beyond one's abilities to pay. Sometimes it's necessary - but not for fast fashion, or the latest TV.
417
02/02/2021 13:22:30 0 0
bbc
"Sometimes it's necessary - but not for fast fashion, or the latest TV."

But who is the arbiter of necessity?
90
02/02/2021 11:43:57 0 1
bbc
The myth of "zero percent finance"

Anything than seems to good to be true probably is and this is one of them that mostly is.

Even if it were true you've given up those lovely clubcard points by going thru this process

And it isn't - the prices are jacked up to compensate so wait till the "offer" is over

There is one useful outcome and that is your credit score will improve by using credit
64
02/02/2021 11:39:05 2 6
bbc
We could solve a lot of problems by making it illegal to reward savers with an interest rate less than 0.5% below the base rate or charge borrowers more than 0.5% above the base rate.

(And return the base rate to a reasonable figure - around 5%)
91
02/02/2021 11:44:32 0 1
bbc
Then the stockmarket would plunge, house prices would crash.
92
02/02/2021 11:44:34 0 4
bbc
Exploitation of the vulnerable by a few devious greedy uncaring individuals. The so called 'Free Market' cannot possibly work with uncaring Human Animals on the loose. Capitalism is strangling our world.
93
Bob
02/02/2021 11:44:44 0 2
bbc
Govt must not interfere DIRECTLY with business. Introduce a credit tax of 100% = no profit = no credit business = problem solved.
35
02/02/2021 11:33:47 0 1
bbc
Who cares. Keep using the one you have at the moment or do without, as every human did until very recently.
94
02/02/2021 11:44:57 0 1
bbc
Do believe there are a few HYS commentators who might just benefit from looking up the word “sarcasm” https://dictionary.cambridge.org/dictionary/english/sarcasm
95
02/02/2021 11:45:05 2 6
bbc
So the government wants to control how much debt individuals get into, but ignores that it's own spending is totally out of control.
96
02/02/2021 11:37:05 2 1
bbc
Buy now don't bother paying later
102
02/02/2021 11:47:34 1 1
bbc
= buy now, prison later.....
97
02/02/2021 11:45:58 1 2
bbc
Reminds of the situation just before the Credit Crunch.

Loads of no questions asked credit available, then the firms acting all surprised when most of their clients start defaulting.
98
02/02/2021 11:46:40 3 3
bbc
WANT WANT WANT
106
02/02/2021 11:48:04 2 1
bbc
good election slogan that, three words ticks all the boxes
99
02/02/2021 11:47:01 0 2
bbc
Arguably, these are just a means for usurers to avoid limits on interest rates. Why haven't trading standards prosecuted a test case under existing anti-usury legislation? If they have already and it failed? Then amend the anti-usary laws to be more general.
349
02/02/2021 12:45:41 0 0
bbc
Read article, find bit where it says zero percent interest?
100
02/02/2021 11:47:08 3 2
bbc
Same old story; those who need credit can't really afford it and those that can afford it don't really need it.

Only use 'interest free' if you've already got the money to pay it.