It used to be that a dinner out, especially at a fancy restaurant wouldbreak your bank account. Now it's a simpe homecooked meal that's causing financial anxiety and stress. Why? There are these new buy now pay later apps that are getting home chefs into hot water.
Regular contributor and chef Pria Krishna covered this new phenomena in today's New York Times Food section.Many young people are using appls like the Swedish company Klarna which came about a decade ago.Initially it was and is used for buying big ticket items that break down the paymnents into affordable chunks. However more and more millennials like Josh Roberts(no relation) was spending beyond his means on food, as he also supports his sister and his girlfiend. His buys are not extravagent, chicken breasts , chips bananas and cereal. However he owed one thousand dollars to Klarna, thnaks to late fees , mostly of one hundred dollars. Bad enough he has student loan debt of $11,000 and two grand worth of unpaid medical bills. The app is temptation to others like Mr. Roberts. There is no interest or extensive credit checks. It's easy to sign on and get a layaway plan.Users already use it for a quick coffee or lunch. It seems that the next step is grocery shopping.
This has spawned the growth of other companies like Klarna, There is Zip, Zilch and Affirm and they're immensely popular in Korea and Australia. It can be a blessinf for customers who keep up with payments. Jessiee Blum of Rutherfod New Jersey didn't need convincing to sign up. She doesn't have to worry about groceries, concetrating on other problems, like the electric and internet bill. For other tis can take some juggling.Noelle Platt a stay at home mother of one in Kerry North Carolina, uses both Zip and Sezzle, another buy now pay later app. She used them first at the start of pandemic and had trouble with saving and payment. With smarter management she can stay ahead of bills.Phoenix hair dresser Hannah Brown has a fluctuating payckeck so buy now pay later works for her. There is a down side she feels. She has a tendency to splurge, especially on take out meals. because she pays so little up front. Her coworkers aren't so lucky. Yet these apps are taking over thanks to many food stamp programs are ending. There is also investigation in it too but ti skirts the Truth in Lending Act.
will the buy no pay later idea catch on? Yes, if food prices keep rising. There may be pushback from some but these apps will become necessary for all to eat properly.
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