Apple to launch ‘buy now pay later service’ creating faster consumer debt for more people
Apple to launch ‘buy now pay later service’ creating faster consumer debt for more
Apple will launch a new ‘buy now pay later service’ (BNPL) scheme in the US to spread the cost of purchases over four to six weeks.
The BBC reported last December that over 15 million people in the UK are already using BNPL services run by the likes of Klarna, Clearpay, Laybuy and PayPal.
Challenge to traditional; banks.
Citizens Advice reported concerns that 12 million adults are using BNPL services to pay for essentials such as food a toiletries.
Deferring payment will be made even easier with millions of iPhone users tapping their way into easy debt.
The BNPL market is expected to be worth £30 billion by the end of the decade.
Apple’s move comes as the cost of living has reached new highs with the cost of unleaded petrol hitting £2 per litre! One haulage firm said the cost of fuelling a truck has risen by £20,000 a year, which will be passed on to customers.
The pound fell this week after Boris Johnson survived a vote of no confidence.
Although the Queen’s Jubilee celebrations gave a welcome boost to spending on hospitality, consumer spending was down in May as the cost of living continued to rise, according to the British Retail Consortium.
Food prices continue to soar as India bans wheat exports and shortages are starting in some countries.
There is nothing new about consumer debt, but the speed and ease of obtaining credit almost instantaneously has changed in the last few years.
Consumer debt is “dumb” according to Warren Buffett, one of the world’s richest and most successful investors.
Good debt, used for instance to purchase assets, such as property, or start businesses, is smart borrowing, as I explain in my book, Borrow and Grow Rich.
The rich and wealthy have been using smart borrowing or ‘other people’s money (OPM) for centuries to finance business ventures and build huge property portfolios.
You can learn the secrets of property investing using OPM and build your own portfolio.
With inflation running at near double figures the real purchasing power of your cash is being eaten away and will halve every 8 years if consumer prices continue to rise by 9%pa.
However, you can use inflation to your advantage using the right assets and good debt.
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