1 00:00:00,480 --> 00:00:03,440 Speaker 1: Buy now, pay later versus credit cards. The truth you 2 00:00:03,640 --> 00:00:15,880 Speaker 1: need to know and understand to thrive financially. Good morning everyone, 3 00:00:16,000 --> 00:00:18,360 Speaker 1: It's Canna Campbell here and welcome back to another episode 4 00:00:18,400 --> 00:00:22,880 Speaker 1: of Sugar Mumma's Fireplay, the podcast where we spark financial 5 00:00:22,880 --> 00:00:27,120 Speaker 1: independence together. We feel your early retirement dreams, and I 6 00:00:27,200 --> 00:00:31,560 Speaker 1: helped give you the tools to build real, sustainable wealth 7 00:00:31,600 --> 00:00:35,080 Speaker 1: and independence. Now today we're talking about something I have 8 00:00:35,200 --> 00:00:41,800 Speaker 1: been seeing everywhere on TikTok, Instagram and even conversations with friends, 9 00:00:42,159 --> 00:00:46,400 Speaker 1: and that is jen Z saying no thanks to credit 10 00:00:46,440 --> 00:00:49,600 Speaker 1: cards and yes please to buy now, pay later. 11 00:00:50,120 --> 00:00:51,680 Speaker 2: And honestly, I get it. 12 00:00:52,280 --> 00:00:55,400 Speaker 1: I completely understand it, and I even occasionally use buy now, 13 00:00:55,400 --> 00:00:57,120 Speaker 1: pay later because I don't own a credit card. 14 00:00:57,800 --> 00:00:59,520 Speaker 2: See, credit cards. 15 00:00:59,200 --> 00:01:02,360 Speaker 1: Have become I guess the bad you know, the today's 16 00:01:02,440 --> 00:01:05,920 Speaker 1: days like bad bad boy. You know, interest rates can 17 00:01:05,920 --> 00:01:08,800 Speaker 1: be up to like twenty percent per animal the credit card, 18 00:01:09,160 --> 00:01:11,720 Speaker 1: and then there's lots of traps with fine print and 19 00:01:11,920 --> 00:01:15,880 Speaker 1: the history of pushing people into like a debt spiral 20 00:01:15,920 --> 00:01:20,240 Speaker 1: that can sometimes take people years and years to escape. 21 00:01:20,920 --> 00:01:24,080 Speaker 1: And gen Z have eyes wide open and they're smart, 22 00:01:24,200 --> 00:01:27,040 Speaker 1: and you know they've seen what's happened to their parents, 23 00:01:27,200 --> 00:01:32,039 Speaker 1: their older friends, even influences they might follow, and they 24 00:01:32,080 --> 00:01:34,440 Speaker 1: don't want to buy of it, which is smart. 25 00:01:35,040 --> 00:01:36,040 Speaker 2: But here's the thing. 26 00:01:36,920 --> 00:01:41,240 Speaker 1: Whilst buy Now Pay Later feels safer, you know there's 27 00:01:41,280 --> 00:01:45,240 Speaker 1: no interest, so you've got a quick approval, the repayments 28 00:01:45,319 --> 00:01:48,560 Speaker 1: are much smaller and spread across you know, four to 29 00:01:48,600 --> 00:01:53,000 Speaker 1: six or eight repayments. It can still quietly create the 30 00:01:53,040 --> 00:01:57,160 Speaker 1: same financial headache as a credit card can if you're 31 00:01:57,160 --> 00:02:01,280 Speaker 1: not managing by Now Pay Later correctly. And the thing 32 00:02:01,360 --> 00:02:04,040 Speaker 1: with buy Now pay letter is it is so easy 33 00:02:04,080 --> 00:02:07,320 Speaker 1: to access. It can even be more tempting to actually 34 00:02:07,400 --> 00:02:12,639 Speaker 1: overspend and harder to actually spot when it becomes a problem. 35 00:02:12,680 --> 00:02:15,440 Speaker 1: And before you know it, you've got five different by 36 00:02:15,480 --> 00:02:20,520 Speaker 1: Now Pay Later payments going on three already defaulting. You're 37 00:02:20,560 --> 00:02:24,440 Speaker 1: getting text messages saying this is overdue, and you're starting 38 00:02:24,520 --> 00:02:25,280 Speaker 1: to not open. 39 00:02:25,200 --> 00:02:27,120 Speaker 2: Up your inbox and see what emails are coming in. 40 00:02:27,560 --> 00:02:31,440 Speaker 1: Now. This episode isn't actually about telling you not to 41 00:02:31,520 --> 00:02:34,600 Speaker 1: use by Now Play Later, or never to even think 42 00:02:34,680 --> 00:02:37,240 Speaker 1: about using a credit card and just to spend cash. 43 00:02:38,000 --> 00:02:40,400 Speaker 1: That's not what I'm about. What I want to do 44 00:02:40,440 --> 00:02:43,919 Speaker 1: from today's episode is give you the facts explain the risks, 45 00:02:44,240 --> 00:02:48,359 Speaker 1: but also share some really helpful smart habits that allow 46 00:02:48,480 --> 00:02:51,680 Speaker 1: you to use any form of credit so that you 47 00:02:51,800 --> 00:02:55,480 Speaker 1: stay in control at all times and not make whatever 48 00:02:55,560 --> 00:02:59,280 Speaker 1: decision you make being about repayment schedules, because for me, 49 00:03:00,040 --> 00:03:03,280 Speaker 1: your financial goals I think are way too important to 50 00:03:03,320 --> 00:03:07,639 Speaker 1: ever lose momentum because you have damaged your finances over 51 00:03:07,680 --> 00:03:09,640 Speaker 1: a pair of shoes that you saw on sale or 52 00:03:09,639 --> 00:03:11,280 Speaker 1: a last minute concert ticket. 53 00:03:12,040 --> 00:03:13,800 Speaker 2: So from today's episode, I guess. 54 00:03:13,600 --> 00:03:16,400 Speaker 1: I want to just explain why by now Pay Later 55 00:03:16,760 --> 00:03:19,919 Speaker 1: looks so appealing and obviously the traps that you may 56 00:03:19,919 --> 00:03:20,880 Speaker 1: not be able to see right. 57 00:03:20,760 --> 00:03:24,080 Speaker 2: Now, how to use it without. 58 00:03:23,639 --> 00:03:27,520 Speaker 1: Buy now pay later, using you and my five Golden 59 00:03:27,600 --> 00:03:30,040 Speaker 1: rules when it comes to using by now pay later, 60 00:03:30,080 --> 00:03:32,400 Speaker 1: so you can actually enjoy it in the convenience of 61 00:03:32,440 --> 00:03:35,760 Speaker 1: it without ever sacrificing your financial freedom. And as mentioned, 62 00:03:36,000 --> 00:03:39,760 Speaker 1: I occasionally will use by now Pay Later. So let's 63 00:03:39,840 --> 00:03:43,000 Speaker 1: get into it. So, first of all, for those of 64 00:03:43,000 --> 00:03:45,800 Speaker 1: you who didn't realize this about Gen Z, like why 65 00:03:46,160 --> 00:03:52,000 Speaker 1: is this generation completely ignoring credit cards? Let's start with 66 00:03:52,000 --> 00:03:55,880 Speaker 1: the elephant in the room. So Australians, particularly this generation, 67 00:03:56,040 --> 00:03:59,640 Speaker 1: are actually avoiding credit cards completely and I had a 68 00:03:59,680 --> 00:04:02,840 Speaker 1: really conversation with my O pair who's twenty, and she's like, 69 00:04:03,040 --> 00:04:04,920 Speaker 1: I never want a credit card. I think it's the 70 00:04:04,920 --> 00:04:06,880 Speaker 1: worst thing ever. I've watched my friends get into so 71 00:04:06,960 --> 00:04:10,080 Speaker 1: much debt. It physically frightens her. It gives her anxiety. 72 00:04:10,760 --> 00:04:13,200 Speaker 1: And you know, for decades, credit cards, you know, were 73 00:04:13,240 --> 00:04:16,000 Speaker 1: a grown up financial products of our time. You know, 74 00:04:16,040 --> 00:04:19,320 Speaker 1: they're there with the ultimate sign of independence and success. 75 00:04:19,400 --> 00:04:23,720 Speaker 1: But now this generation, and even sometimes to myself, they've 76 00:04:23,720 --> 00:04:27,599 Speaker 1: been recast as the villain, and at times within reason 77 00:04:27,800 --> 00:04:30,159 Speaker 1: good reason. You know, the interest rates, as I said, 78 00:04:30,200 --> 00:04:33,159 Speaker 1: hop her, around twenty percent or sometimes even higher. There 79 00:04:33,200 --> 00:04:37,799 Speaker 1: are hidden fees like annual fees, and you know, repayment fees, 80 00:04:38,120 --> 00:04:41,400 Speaker 1: and then there's like sneaky charges like surcharges, and then 81 00:04:41,440 --> 00:04:45,520 Speaker 1: there's the trap of minimum repayments that I think are 82 00:04:45,560 --> 00:04:47,400 Speaker 1: the worst things about credit card because they keep you 83 00:04:47,440 --> 00:04:51,200 Speaker 1: in debt for years. And here's a reality check. A 84 00:04:51,240 --> 00:04:54,840 Speaker 1: credit card with a balance at five thousand dollars at 85 00:04:54,839 --> 00:04:58,040 Speaker 1: twenty percent interest is when you're only making the minimum repayments, 86 00:04:58,160 --> 00:05:02,159 Speaker 1: could take you decades to pay off that and actually 87 00:05:02,240 --> 00:05:04,960 Speaker 1: cost you thousands of dollars in interest over the long 88 00:05:05,040 --> 00:05:08,080 Speaker 1: run in gen Z has grown up in the shadow 89 00:05:08,160 --> 00:05:10,960 Speaker 1: of this, like you know, two thousand and eight GFC, 90 00:05:11,040 --> 00:05:14,159 Speaker 1: the pandemic rising costs of living, and now we've got 91 00:05:14,200 --> 00:05:20,080 Speaker 1: obviously the housing affordability crisis. They've seen their parents, have 92 00:05:20,240 --> 00:05:25,719 Speaker 1: seen their older friends, they've seen people online weighed down 93 00:05:25,760 --> 00:05:27,960 Speaker 1: by this type of debt, and they don't want to 94 00:05:27,960 --> 00:05:31,320 Speaker 1: do that for themselves or to themselves. And they are 95 00:05:31,360 --> 00:05:34,000 Speaker 1: thinking ahead of things like you know, the aspirations of 96 00:05:34,040 --> 00:05:37,040 Speaker 1: buying a home and still building an investment portfolio. And 97 00:05:37,080 --> 00:05:40,800 Speaker 1: they know that even a small amount of credit or 98 00:05:40,839 --> 00:05:45,080 Speaker 1: access to credit through say a credit card, can reduce 99 00:05:45,120 --> 00:05:48,479 Speaker 1: their borrowing power. So what they've done is turned into 100 00:05:48,480 --> 00:05:52,280 Speaker 1: something that feels safer drum roll, buy now, pay later. 101 00:05:52,360 --> 00:05:55,680 Speaker 1: But it's not really quite as it seems, so let's 102 00:05:55,720 --> 00:05:58,120 Speaker 1: go through that together. By now pay later has you know, 103 00:05:58,279 --> 00:06:03,359 Speaker 1: marketed itself brilliantly, and this is why it looks and 104 00:06:03,480 --> 00:06:08,479 Speaker 1: feels so enticing. First is there's no interest now that 105 00:06:08,600 --> 00:06:11,840 Speaker 1: alone sounds like a massive win. And then there are 106 00:06:11,920 --> 00:06:16,400 Speaker 1: small repayments. Because you're breaking one large purchase into say 107 00:06:16,480 --> 00:06:20,719 Speaker 1: four or six payments, it feels so much more manageable 108 00:06:20,760 --> 00:06:23,440 Speaker 1: to our cash flow. It sometimes even feels like cheaper 109 00:06:23,440 --> 00:06:26,320 Speaker 1: and even a little bit more responsible. And then if 110 00:06:26,320 --> 00:06:28,320 Speaker 1: you ever applied for buy Now, Pay later, you'll know 111 00:06:28,360 --> 00:06:32,480 Speaker 1: that it's pretty much an instant approval. There's no long forms, 112 00:06:32,560 --> 00:06:36,120 Speaker 1: there's no scary credit checks, You're not having to submit 113 00:06:36,279 --> 00:06:41,560 Speaker 1: you know, payments or pacelips or tax returns or anything 114 00:06:41,600 --> 00:06:44,640 Speaker 1: like that. It's really fast and it does kind of 115 00:06:44,720 --> 00:06:49,560 Speaker 1: feel modern. You know, there's no physical card. It's literally 116 00:06:49,640 --> 00:06:54,080 Speaker 1: using passwords to log in, and it's built into the 117 00:06:54,200 --> 00:06:58,600 Speaker 1: sort of online checkout or even in store payment terminals 118 00:06:58,600 --> 00:07:00,640 Speaker 1: where you literally don't even need to to go and 119 00:07:00,680 --> 00:07:02,560 Speaker 1: find your wallet or look up your bank details. You 120 00:07:02,600 --> 00:07:05,320 Speaker 1: can literally pay for something with just a tap with 121 00:07:05,440 --> 00:07:10,400 Speaker 1: your finger. So on the surface it looks really smart. 122 00:07:10,480 --> 00:07:13,120 Speaker 1: It is a great alternative, you know, from a surface 123 00:07:13,200 --> 00:07:15,000 Speaker 1: level point of view, then a credit card, and for 124 00:07:15,080 --> 00:07:18,160 Speaker 1: some people who use it properly, it can be a 125 00:07:18,200 --> 00:07:21,119 Speaker 1: tool that helps, you know, smooth out your cash flow. 126 00:07:21,560 --> 00:07:23,920 Speaker 1: I remember when I first leart learning about by now pilater, 127 00:07:23,920 --> 00:07:26,080 Speaker 1: I was really against it, but I actually had some 128 00:07:26,160 --> 00:07:29,160 Speaker 1: of my younger staff actually say no and explain to 129 00:07:29,160 --> 00:07:31,080 Speaker 1: me how they were using it, and they were using 130 00:07:31,080 --> 00:07:33,200 Speaker 1: it as a cash flow tool a budgeting tool, and 131 00:07:33,240 --> 00:07:35,160 Speaker 1: they shared a couple of stories with me. I was like, actually, 132 00:07:35,400 --> 00:07:39,440 Speaker 1: that's pretty savvy. But the thing is, and he's the kicker. 133 00:07:39,840 --> 00:07:43,880 Speaker 1: Just because it's interest free doesn't mean it's free of risk. 134 00:07:44,960 --> 00:07:48,640 Speaker 1: What people don't always realize about by Now Pay Later 135 00:07:48,800 --> 00:07:54,920 Speaker 1: is there's no affordability checks done by these providers. Unlike 136 00:07:55,000 --> 00:07:58,160 Speaker 1: credit cards, most buy now pay laters don't have to 137 00:07:58,320 --> 00:08:01,840 Speaker 1: check if you can actually afford the repayments, which I 138 00:08:01,880 --> 00:08:05,280 Speaker 1: think is pretty messed up. That means it's so easy 139 00:08:05,440 --> 00:08:08,640 Speaker 1: for a very innocent person to sign up for multiple 140 00:08:08,680 --> 00:08:12,000 Speaker 1: by now pay Later accounts without realizing actually how much 141 00:08:12,040 --> 00:08:14,360 Speaker 1: they are going to have to commit to for each 142 00:08:14,720 --> 00:08:17,720 Speaker 1: pay cycle. And this is where we see people with 143 00:08:17,880 --> 00:08:20,040 Speaker 1: like you know, five, six, seven or even eight. I 144 00:08:20,080 --> 00:08:23,720 Speaker 1: saw recently different by now the payments going and they, yes, 145 00:08:23,800 --> 00:08:26,920 Speaker 1: they were all spinning out of control and not being repaid. 146 00:08:27,600 --> 00:08:30,240 Speaker 1: The second thing about people don't realize about by Now 147 00:08:30,280 --> 00:08:34,679 Speaker 1: pay Later is the late fees really do add up. 148 00:08:34,800 --> 00:08:36,320 Speaker 1: It sounds like it's only going to be ten dollars 149 00:08:36,360 --> 00:08:39,640 Speaker 1: or maybe twenty dollars, but some of these services actually 150 00:08:39,720 --> 00:08:44,000 Speaker 1: have no cap on the late fees. So one hundred 151 00:08:44,000 --> 00:08:46,600 Speaker 1: dollars item could actually end up costing you one hundred 152 00:08:46,640 --> 00:08:49,480 Speaker 1: and forty because of all these late fees, and if 153 00:08:49,480 --> 00:08:54,280 Speaker 1: you've missed a payment, and those payments and fees then 154 00:08:54,800 --> 00:08:58,079 Speaker 1: really start to stack up, so it actually could cost 155 00:08:58,120 --> 00:09:00,880 Speaker 1: you so much more than what you've actually purchased. And 156 00:09:00,920 --> 00:09:03,640 Speaker 1: then I hate to tell you this, but it can 157 00:09:03,679 --> 00:09:08,320 Speaker 1: actually impact your credit score. So missed payments or where 158 00:09:08,360 --> 00:09:13,040 Speaker 1: you've defaulted are reported to the credit bureaus. Now, this 159 00:09:13,440 --> 00:09:17,800 Speaker 1: does then make it harder to be able to borrow money, 160 00:09:17,920 --> 00:09:20,719 Speaker 1: for example, to buy a home, or to take out 161 00:09:20,720 --> 00:09:24,320 Speaker 1: a car loan, or to borrow money to invest, or 162 00:09:25,240 --> 00:09:28,360 Speaker 1: even get out of rental approval. So you need to 163 00:09:28,400 --> 00:09:31,319 Speaker 1: know this is not as safe as it may sound. Also, 164 00:09:31,720 --> 00:09:34,200 Speaker 1: buy now pay Later, which no one really talks about, 165 00:09:34,280 --> 00:09:37,040 Speaker 1: is and if you use buy now, Pay Later, you'll 166 00:09:37,080 --> 00:09:42,600 Speaker 1: get this completely. But it actually encourages impulse spending. When 167 00:09:42,640 --> 00:09:45,440 Speaker 1: you see something you like and think, oh, that's so nice. 168 00:09:45,760 --> 00:09:48,880 Speaker 1: It's like six hundred dollars, I can't actually afford that, 169 00:09:49,040 --> 00:09:53,080 Speaker 1: but oh look they offer buy now, pay later. I'll 170 00:09:53,160 --> 00:09:55,439 Speaker 1: just you know, pay it off over installments and I'll 171 00:09:55,480 --> 00:09:59,280 Speaker 1: pay it off later. Mentality, this makes it far easier 172 00:09:59,320 --> 00:10:02,560 Speaker 1: to actually to fy that large, expensive purchase that you 173 00:10:02,559 --> 00:10:05,960 Speaker 1: wouldn't normally make. You're thinking, oh, it's fine, I'll just 174 00:10:06,040 --> 00:10:08,440 Speaker 1: you know, take it out slowly, over timing. I'm not 175 00:10:08,480 --> 00:10:10,400 Speaker 1: even going to notice those small amounts of money it's 176 00:10:10,400 --> 00:10:13,000 Speaker 1: being taken out of my account over that six week period. 177 00:10:13,040 --> 00:10:15,400 Speaker 2: It's fine, I don't worry. This is the problem. 178 00:10:15,440 --> 00:10:17,319 Speaker 1: We're spending way more money than when we realize, and 179 00:10:17,360 --> 00:10:19,719 Speaker 1: the same with also with credit cards. The next thing 180 00:10:19,800 --> 00:10:23,240 Speaker 1: is is no visibility. If you are not tracking, you're 181 00:10:23,280 --> 00:10:27,440 Speaker 1: buy now, pay later spending. It is so easy to 182 00:10:27,559 --> 00:10:31,560 Speaker 1: forget that you've got forty dollars here, eighty dollars there, 183 00:10:32,080 --> 00:10:34,360 Speaker 1: and it's sixty dollars there, and then all of a 184 00:10:34,400 --> 00:10:39,439 Speaker 1: sudden you are juggling hundreds of dollars in multiple repayments 185 00:10:39,520 --> 00:10:43,800 Speaker 1: coming out at multiple times of your pay cycle or 186 00:10:43,840 --> 00:10:47,040 Speaker 1: of the month, which means trying to put that into 187 00:10:47,040 --> 00:10:50,000 Speaker 1: your budget can be increasingly hard. And I will come 188 00:10:50,120 --> 00:10:52,200 Speaker 1: to the rules that I follow when it comes to 189 00:10:52,600 --> 00:10:55,280 Speaker 1: buy and now pay later. But this is where things 190 00:10:55,360 --> 00:10:57,280 Speaker 1: get messy, and this is where you see people get 191 00:10:57,360 --> 00:11:00,840 Speaker 1: into so much trouble with this. Now I want to 192 00:11:00,880 --> 00:11:05,880 Speaker 1: be also clear, this isn't about criticizing gen Z. In fact, 193 00:11:05,960 --> 00:11:08,640 Speaker 1: I actually think gen Z has done something really powerful 194 00:11:08,640 --> 00:11:11,920 Speaker 1: for because they've actually opened up a conversation about debt 195 00:11:12,559 --> 00:11:16,320 Speaker 1: and in a way that no other generation has. You know, 196 00:11:16,360 --> 00:11:20,240 Speaker 1: they're talking about credit card anxiety, they're questioning the system, 197 00:11:20,440 --> 00:11:23,240 Speaker 1: and they're looking for all alternatives and they're happy to 198 00:11:23,280 --> 00:11:25,880 Speaker 1: share their alternatives with everyone else that might help them. 199 00:11:26,480 --> 00:11:28,880 Speaker 1: And this is a positive thing because it's a huge 200 00:11:28,920 --> 00:11:33,400 Speaker 1: step towards building greater financial literacy in this country. But 201 00:11:33,800 --> 00:11:38,439 Speaker 1: every generation Millennials, gen Z boomers, they can still fall 202 00:11:38,480 --> 00:11:43,280 Speaker 1: into debt traps when a financial product feels easy and accessible. 203 00:11:43,800 --> 00:11:45,920 Speaker 1: But the difference now is that by now pay letter 204 00:11:46,000 --> 00:11:49,120 Speaker 1: is so like frictionless, you could say in that it 205 00:11:49,160 --> 00:11:53,040 Speaker 1: can sneak up on you and so much faster than 206 00:11:53,120 --> 00:11:57,240 Speaker 1: a credit card can. So how do you use by 207 00:11:57,280 --> 00:11:59,640 Speaker 1: now pay letter responsibly or how do you decide if 208 00:11:59,640 --> 00:12:03,120 Speaker 1: it's worth using at all? So this is what I 209 00:12:03,160 --> 00:12:07,200 Speaker 1: recommend you do. Number one is you always track your payments. 210 00:12:07,760 --> 00:12:10,000 Speaker 1: So if you decide to use buy now Pay Later, 211 00:12:10,320 --> 00:12:13,600 Speaker 1: make sure those repayments are in your phone as with 212 00:12:13,640 --> 00:12:16,480 Speaker 1: a calendar note in an alert system to remind you 213 00:12:16,520 --> 00:12:18,199 Speaker 1: that that's coming out of your account in a couple 214 00:12:18,240 --> 00:12:21,520 Speaker 1: of days and put them into your budget so that 215 00:12:21,559 --> 00:12:24,560 Speaker 1: you are completely on top of those repayments and you 216 00:12:24,640 --> 00:12:28,360 Speaker 1: never default. The second thing I'd recommend you do is 217 00:12:28,480 --> 00:12:31,680 Speaker 1: have a buy now Pay Later repayment account so you 218 00:12:31,679 --> 00:12:34,960 Speaker 1: could look at transferring the money for your payments as 219 00:12:35,000 --> 00:12:37,360 Speaker 1: soon as you make that purchase, and just so you 220 00:12:37,400 --> 00:12:39,680 Speaker 1: know you can actually pay it off earlier if you wish, 221 00:12:39,720 --> 00:12:43,400 Speaker 1: which is something I highly recommend. The next thing I 222 00:12:43,440 --> 00:12:46,559 Speaker 1: would recommend so that you never I guess watch buy 223 00:12:46,600 --> 00:12:48,560 Speaker 1: now pay later spiral of control, and that is to 224 00:12:48,640 --> 00:12:51,960 Speaker 1: limit yourself to just one buy now, pay later provider. 225 00:12:52,320 --> 00:12:56,439 Speaker 1: The problem when you've got say Klana, you've got after Pay, 226 00:12:56,600 --> 00:12:59,960 Speaker 1: you've got even PayPal now. Off of this, when you 227 00:13:00,000 --> 00:13:04,120 Speaker 1: I've got multiple different providers, you have multiple headaches. You're 228 00:13:04,160 --> 00:13:06,840 Speaker 1: juggling way more balls in the air. So just stick 229 00:13:06,880 --> 00:13:08,880 Speaker 1: to one. And also it means when you're checking, for 230 00:13:08,920 --> 00:13:12,360 Speaker 1: example after Pay, you can see, okay, well I've got 231 00:13:12,400 --> 00:13:15,480 Speaker 1: these repayments going. It's one quick, easy way to check 232 00:13:15,559 --> 00:13:18,840 Speaker 1: rather than having to check say five different apps. Then 233 00:13:19,160 --> 00:13:23,240 Speaker 1: for using buy now pay later for planned purchases only, 234 00:13:23,800 --> 00:13:26,840 Speaker 1: so don't ever use it for an impulse purchase. 235 00:13:27,400 --> 00:13:29,120 Speaker 2: You know, if you're thinking, Okay, there's one. 236 00:13:28,960 --> 00:13:31,760 Speaker 1: Particular item I would like to buy for myself, and 237 00:13:31,880 --> 00:13:34,160 Speaker 1: I'm going to reward myself without because I've achieved this 238 00:13:34,200 --> 00:13:37,600 Speaker 1: goal already and I'm going to help pay for that item. 239 00:13:37,600 --> 00:13:39,480 Speaker 1: I'm going to pay for it off over, you know, 240 00:13:39,520 --> 00:13:43,160 Speaker 1: the six installments or eight installments, depending on who you're using. 241 00:13:43,600 --> 00:13:46,600 Speaker 1: Just do it planet, do your research, make sure you're 242 00:13:46,640 --> 00:13:50,920 Speaker 1: buying in a smart, savvy way. Don't do this impulse thing. 243 00:13:51,000 --> 00:13:53,720 Speaker 1: Oh just put it on buy now Pay Later. And then, finally, 244 00:13:53,800 --> 00:13:56,920 Speaker 1: if you're ever struggling with buy now, Pay Later, pick 245 00:13:57,000 --> 00:14:01,160 Speaker 1: up the phone and ask for something called ship support, 246 00:14:01,360 --> 00:14:03,880 Speaker 1: which you can get where you can get a repayment 247 00:14:03,920 --> 00:14:06,559 Speaker 1: plan put in place and help avoid all of those 248 00:14:06,679 --> 00:14:10,360 Speaker 1: late fees and credit damage. It is so important that 249 00:14:10,400 --> 00:14:14,200 Speaker 1: you talk to human, explain your situation and get this 250 00:14:14,280 --> 00:14:17,720 Speaker 1: problem fixed for good now. I as promised I said, 251 00:14:17,720 --> 00:14:20,440 Speaker 1: I would share with you my five golden rules for 252 00:14:20,520 --> 00:14:23,280 Speaker 1: buy now Pay Later, because occasionally I do like to 253 00:14:23,360 --> 00:14:26,080 Speaker 1: use this myself. What I would say is number one 254 00:14:26,200 --> 00:14:29,720 Speaker 1: is I would never buy something on buy now pay 255 00:14:29,800 --> 00:14:32,720 Speaker 1: letter if I wasn't prepared to pay for it in cash. 256 00:14:33,240 --> 00:14:36,400 Speaker 1: So I won't just buy it because it's an option 257 00:14:36,480 --> 00:14:38,320 Speaker 1: to pay for it and buy buy now pay letter. 258 00:14:38,440 --> 00:14:40,520 Speaker 1: I'll buy it because I love values and appreciate it. 259 00:14:40,520 --> 00:14:42,280 Speaker 1: There's that huge mindfulness as to the value with the 260 00:14:42,280 --> 00:14:45,920 Speaker 1: actual purchase. I would never also use buy now pay 261 00:14:46,000 --> 00:14:48,640 Speaker 1: letter for essentials. I would never use it to pay 262 00:14:48,680 --> 00:14:50,560 Speaker 1: for groceries. I'd never use it to pay for my 263 00:14:50,720 --> 00:14:55,160 Speaker 1: utilities or rent or anything that was an essential. Then, 264 00:14:55,200 --> 00:14:59,480 Speaker 1: of course I would always cap buy now spending ideally 265 00:14:59,520 --> 00:15:01,720 Speaker 1: with my fine you're planning cap on, I'd say zero. 266 00:15:01,760 --> 00:15:03,800 Speaker 1: You shouldn't be using it at all. But I understand 267 00:15:03,800 --> 00:15:05,840 Speaker 1: that some people do use this in a smart way. 268 00:15:06,240 --> 00:15:09,040 Speaker 1: So if you're finding that you are spending more than say, 269 00:15:09,240 --> 00:15:12,320 Speaker 1: five to ten percent of your after tax salary on 270 00:15:12,400 --> 00:15:14,680 Speaker 1: by now pay later, that is a red flag to 271 00:15:14,760 --> 00:15:17,840 Speaker 1: simply stop. That means you're actually not managing your budget correctly. 272 00:15:17,920 --> 00:15:20,280 Speaker 1: You're using this as a band aid, and the band 273 00:15:20,280 --> 00:15:23,760 Speaker 1: aid is about to come off and expose a deep, infected, 274 00:15:24,280 --> 00:15:28,240 Speaker 1: nasty wound that needs urgent medical attention. Don't let it 275 00:15:28,400 --> 00:15:30,960 Speaker 1: be that become like that. And then, of course, never 276 00:15:31,000 --> 00:15:34,200 Speaker 1: stack your purchases you would be a fool to have 277 00:15:34,320 --> 00:15:37,280 Speaker 1: multiple buy now pay later payment's going. As I said, 278 00:15:37,320 --> 00:15:39,520 Speaker 1: you were just juggling additional balls in the air. You're 279 00:15:39,520 --> 00:15:42,800 Speaker 1: creating additional headaches for yourself. If you're someone who likes 280 00:15:42,800 --> 00:15:45,840 Speaker 1: buy nowpa Lata has emergency money, is good at managing 281 00:15:45,840 --> 00:15:48,040 Speaker 1: their cashflow, but just likes it and doesn't have a 282 00:15:48,080 --> 00:15:50,800 Speaker 1: credit card. Only ever, have one repayment going at one time. 283 00:15:51,120 --> 00:15:53,440 Speaker 1: Don't have you know, five different after pay or five 284 00:15:53,480 --> 00:15:56,320 Speaker 1: different climbs or five different paypals or whoever you know 285 00:15:56,400 --> 00:15:58,800 Speaker 1: you want to use as your provider. Just have one 286 00:15:58,840 --> 00:16:01,840 Speaker 1: going a time, and do not purchase anything until that 287 00:16:01,960 --> 00:16:05,240 Speaker 1: particular purchase that you've previously made has been paid off 288 00:16:05,320 --> 00:16:08,040 Speaker 1: in full, and in fact, have some breathing time and 289 00:16:08,120 --> 00:16:11,680 Speaker 1: learn to also enjoy using cash as well, and then 290 00:16:11,880 --> 00:16:15,520 Speaker 1: finally have an exit plan. Buy now, pay Later is 291 00:16:15,560 --> 00:16:19,400 Speaker 1: a short term payment tool. It is most definitely not 292 00:16:19,720 --> 00:16:23,800 Speaker 1: a long term lifestyle. Use it to your financial advantage. 293 00:16:23,880 --> 00:16:26,880 Speaker 1: If it's not working, kick it now. As I said, 294 00:16:26,880 --> 00:16:30,080 Speaker 1: by now pay later can definitely be convenient for some, 295 00:16:30,280 --> 00:16:33,040 Speaker 1: and it may even be helpful for some, but only 296 00:16:33,080 --> 00:16:37,000 Speaker 1: when you are in complete control. But just like credit cards, 297 00:16:37,080 --> 00:16:39,960 Speaker 1: it can also work against you if you're not intentional 298 00:16:40,000 --> 00:16:43,760 Speaker 1: about how you use it. So gen Z, if you're 299 00:16:43,760 --> 00:16:46,720 Speaker 1: listening right now, please know I applaud you for questioning 300 00:16:46,720 --> 00:16:50,880 Speaker 1: the credit card system and for looking for alternatives. But remember, 301 00:16:51,080 --> 00:16:53,800 Speaker 1: it's not the product that decides your financial future, it's 302 00:16:53,840 --> 00:16:55,400 Speaker 1: actually how you use it. 303 00:16:55,960 --> 00:16:57,160 Speaker 2: So if you want. 304 00:16:57,000 --> 00:17:01,800 Speaker 1: Financial freedom, focus on building habits that's support it. The budgeting, 305 00:17:02,120 --> 00:17:06,240 Speaker 1: the saving, the investing, and of course staying on top 306 00:17:06,320 --> 00:17:09,280 Speaker 1: of all of your debts no matter what type of 307 00:17:09,320 --> 00:17:11,760 Speaker 1: debt you have in your life. That is actually how 308 00:17:11,800 --> 00:17:14,639 Speaker 1: you protect your financial future and make sure it is 309 00:17:14,720 --> 00:17:16,879 Speaker 1: growing to something that is powerful and you're doing it 310 00:17:16,880 --> 00:17:20,120 Speaker 1: in a productive way. And of course you have your 311 00:17:20,160 --> 00:17:24,639 Speaker 1: options and your eyes wide open. So whether it's credit 312 00:17:24,680 --> 00:17:27,680 Speaker 1: cards or buy now, Pay Later, or any other financial tool, 313 00:17:28,240 --> 00:17:30,600 Speaker 1: the rule is always going to be the same. You 314 00:17:30,680 --> 00:17:34,399 Speaker 1: stay in control, not the other way around. So if 315 00:17:34,440 --> 00:17:37,040 Speaker 1: you found today's episode it's helpful, please can you do 316 00:17:37,080 --> 00:17:40,359 Speaker 1: me a huge favor and send it right now to 317 00:17:40,600 --> 00:17:42,920 Speaker 1: any of your friends that use by now, Pay Later, 318 00:17:43,119 --> 00:17:45,800 Speaker 1: or even better, share it on your socials and tag me, 319 00:17:46,160 --> 00:17:50,120 Speaker 1: because you never know who might need to hear this 320 00:17:50,240 --> 00:17:53,160 Speaker 1: advice about buy now, pay later right now, And in fact, 321 00:17:53,320 --> 00:17:58,000 Speaker 1: a lot of people are really hiding behind these dark 322 00:17:58,119 --> 00:18:03,160 Speaker 1: secrets of multiple repayment, back to back repayments and damaging 323 00:18:03,160 --> 00:18:06,240 Speaker 1: their credit score. So just by sharing this and sending this, 324 00:18:06,760 --> 00:18:08,280 Speaker 1: you're going to be helping a lot of people, whether 325 00:18:08,320 --> 00:18:11,840 Speaker 1: you realize it or not. And of course, thank you 326 00:18:11,920 --> 00:18:14,760 Speaker 1: so much for everyone for listening to today's episode. It's 327 00:18:14,840 --> 00:18:17,199 Speaker 1: been a delight and a pleasure and an honor to 328 00:18:17,400 --> 00:18:20,320 Speaker 1: tune in with you this morning. Enjoy the rest of 329 00:18:20,359 --> 00:18:23,000 Speaker 1: your week, and I'll catch you this Friday at five 330 00:18:23,040 --> 00:18:26,280 Speaker 1: am for start here, and don't forget you can always 331 00:18:26,280 --> 00:18:29,280 Speaker 1: send through your questions to me to pick my brain 332 00:18:29,480 --> 00:18:32,240 Speaker 1: and to help you get started. All right, everyone, have 333 00:18:32,280 --> 00:18:33,200 Speaker 1: a fantastic week. 334 00:18:33,359 --> 00:18:34,040 Speaker 2: Speak to you soon.