For people locked out of homeownership, “Buy Now, Pay Later” has become a way to finance basic expenses — with future income that may not actually materialize. The Trump administration, meanwhile, is busy protecting the lenders.
For people locked out of homeownership, “Buy Now, Pay Later” has become a way to finance basic expenses — with future income that may not actually materialize. The Trump administration, meanwhile, is busy protecting the lenders.
According to the article, Klarna posted a nearly $100M loss in Q1. So I suppose people just keep doing what theyre doing, at the expense of their own credit I guess
Characterizing this as the lender’s fault is kind of silly though. Were talking about people buying door dash and cochella tickets on 0% interest credit. If anything its surprising the lenders are stupid enough to offer that in the first place. If you buy door dash on those terms and dont pay it back on time, its hard to see that as predatory in any way. Thats not remotely similar to a subprime loan on a car or a payday loan
We can however blame the lenders for continuing the dumbass practice of Collateralized Debt Obligation bundling after 2008 though. With these damn loans that’s really playing with fire if they start carrying down onto people’s mortgages as credit card debt did in '08. Which seems likely given I think the Wall street types think Trump will give them a bailout instead of being a fucking saditst to people who he perceives as having wronged him.