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WJKramer t1_j8njgly wrote

I should be over qualified then.

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Qwerky411 t1_j8ntj9z wrote

I can’t wait for Apple to start a mortgage company. “Yes, of course I can afford this house. I own the entire line of Apple products, including the polishing cloth”

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ePhantom98 t1_j8nzn44 wrote

Apple is going to become the newest credit agency.

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[deleted] t1_j8nzu08 wrote

Nope I’m all set. Klarna got enough from me before I deleted it.

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RSperfect t1_j8nzx1o wrote

Apple getting into so many deferred payment schemes is a sign that something is deeply wrong with our economy.

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BluePeriod_ t1_j8o1hu3 wrote

I’m pretty excited for this. I know pay in 4 systems get a bad rep and understandably so, but if used wisely is can be a massive help.

For example, my microwave died and I didn’t want to drop all that $500 at once and I didn’t want to carry a balance on my credit card so I paid for it on my pay day using Pay in 4 with another system and it worked out.

Another was with my car insurance. There’s a $430 discount for paying the premium up front vs monthly. So I just threw the whole thing on Pay in 4 and got the discounted rate.

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wadonious t1_j8o2386 wrote

Might be obvious, but these systems are only a problem if you buy things you can’t afford, just like a credit card. But it’s nefarious because it tricks people into buying things they can’t afford

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BluePeriod_ t1_j8o2f55 wrote

Yeah. It makes me sad too because it’s like - a fun thing here and there? Fine. But I work for a bank and I’ve seen some accounts that have a LONG series of purchases from Zip/Klarna/PayPal installments etc. Like “entire paycheck is pretty much gone” amounts. It’s an easy pit to fall into.

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jadondrew t1_j8o59v1 wrote

Yeah this is not it. The intention of these schemes is to psychologically manipulate customers into spending more than they have.

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BluePeriod_ t1_j8o6s2f wrote

I know, right? But it’s for a home of 5 people and it’s above range with exhaust fan and a bunch of other stuff. The one installed before came with the house and had been there since 2001 so fingers crossed this lasts as long.

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blorgon7211 t1_j8o9mzd wrote

this credit culture is rising in india too, ppl are buying phones worth 2 months of their salary.

though buying especially relatively cheap items like phones on credit is way more prevalent in america

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electric_medicine t1_j8oa3ci wrote

When I moved in with my fiancé a couple of months ago, we didn't have a stove (or anything, really) yet moving out of our parents places. Bought the cheapest store-brand microwave from an electronics store, $140. And for $140, it's really not doing a great job of being a microwave, or an oven with the oven function, honestly. But it gets the job done and we'll buy a more proper microwave when it dies (which will probably be a couple of months after the warranty runs out).

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Diegobyte t1_j8oabfi wrote

I went through the same thing 8 years ago in an apartment. Figured microwaves were like 40 bucks. Well they aren’t. We didn’t even get one and actually liked it. But it would be hard without a stove lol

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kapatmak t1_j8oe4y4 wrote

iDebt

Can’t wait for idiots starting to camp, to be the first one to get their hands on this.

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Blales t1_j8ohrr3 wrote

I don’t think I’d get a mortgage through Apple if I’m being honest. I think they’re great but I really don’t think I could live in a house without Windows.

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Sylvurphlame t1_j8oilb5 wrote

Right?

The whole splitting a purchase over installments thing a useful tool when properly utilized. But like any tool, it shouldn’t be overly relied upon. But if you have an unexpected purchase? Sure, now I can split it across two paychecks instead of taking a lump sum from my emergency fund.

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liuhanshu2000 t1_j8oiz2p wrote

Yeah it’s a little scammy that they advertise “no interest” and then charge you a fee (based on how much you’ve spent, split evenly over your monthly payment, so exactly like an interest)

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Diegobyte t1_j8oj4ys wrote

I still think it’s cool when you can do some of this stuff on the bank side so it opens up a lot of flexibility.

I just say I’ve been using my Apple Card more and more for online purchases. It’s just so easy

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mustangs-and-macs t1_j8oj5yb wrote

I’m sure this will be huge. Hell, I heard an ad today for a crowdfunded payday loan app. These services are so predatory though, it’s really not a good practice to use them unless you know what you’re getting into.

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jadondrew t1_j8okt0l wrote

But that’s not why they’re implementing that and I think you know that. They don’t make any money when you take on a responsible amount of debt you can pay off. They make money from the people that take on too many payments then can’t afford to pay them on time.

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Sylvurphlame t1_j8olc4h wrote

Or they get a cut of the sales price, same as a normal credit card fee? Hell if I know how they work it. Not my problem.

I’ll be blunt, if it’s available and I fail to use it responsibly, that’s my problem. If it’s available and multiple people fail to use it responsibly, then that’s their problem. If it’s multiple multiple people then it’s a matter for regulators.

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AstronautMindless873 t1_j8olnl0 wrote

With all the (pretty good) jokes and memes over here, Apple is honestly brilliant for doing this. There’s a true addiction for their brand on the market and I can actually see many many people using this. Broke, “bad with money” people, but many nonetheless.

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NESS_Bound t1_j8oqhtp wrote

When are we getting social credit scores?!

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TheElasticTuba t1_j8p0q99 wrote

I wonder how this will turn out though with Apple also being a retailer themselves. Hundreds of retailers in the past have gotten into trouble for essentially running as a bank with lines of credit and things like that, and this is walking a fine line into that. Apple gets away with the Apple Card, because jt’s handled through Synchrony Bank, but this being through them is getting a lot closer to self-banking. Sure, it’s not exactly credit, but I’m still intrigued how Congress and everything will see it.

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wild_a t1_j8p3jpy wrote

4 installments over 6 weeks? You’re telling me someone can’t afford to pay for something right now but will be able to in 6 weeks? What’s the purpose of short-term financing?

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flickh t1_j8pc1d0 wrote

Who needs this? Is it running the Mars rover command center? Is it managing America's entire nuclear arsenal? Is it replicating Ronald Reagan's brain in realtime? Is it composing Hamlet III?

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flickh t1_j8pc4bi wrote

Apple getting into the loan shark game. Those profit margins going UPPPPP

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rguerraf t1_j8pg50p wrote

AAPL has over $500 in the cash mountain for every US resident… at average 30% APR, they can double that cash in 2.6 years

And some people think that BTC is easy money

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Justagreewithme t1_j8pgomb wrote

My critique would be, in all your examples, you’re already overextended. If you are an adult and can’t afford to just pay any of those things off in full at the time, then you are already in a very bad position financially. The people that are going to use this, are those in financial hardships and as such are disproportionately more likely to make poor money decisions and not see the risks, making their situation much worse.

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beanie_0 t1_j8pimda wrote

Will probably not make it to the UK will it 😒

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thatbakedpotato t1_j8pj8wa wrote

If you have the money to afford it, BNPL systems are actually the smartest way of buying something. The danger is that it allows people who think they can afford it to go beyond their means, but BNPL in itself is not a bad thing.

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dnick423 t1_j8ppken wrote

What happened to the high interest savings account? They put it in the key notes for 16.2 but I haven’t heard anything about it since

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BluePeriod_ t1_j8pq1dj wrote

Your critique is completely valid, and I thank you for approaching it from a very mature standpoint. The truth is, I am not doing so hot. I’m trying to save as much as I can, times are tough, and my household is disproportionately reliant on me. This is only temporary, but I am doing the best I can.

My parents were bankers, so they taught me all about predatory loans early. While it’s not perfect, the pay in 4 option for me is working because it allows me to offset the high cost these unexpected necessities without falling into the trappings of a high interest loan that would be impossible to pay back or dipping into my savings. It’s the best of a bad situation and the most affordable in terms of staying liquid. Especially with all the sudden costs that came up recently.

To be clear, I don’t want my initial comment to serve as an endorsement for these type of products, I’m only relaying that it’s working for me in my very specific situation. I would never particularly recommend them to anyone, but if hard-pressed, I would absolutely recommend it as an alternative to a predatory high interest loan depending on their own circumstances.

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xaviershappy t1_j8pr4i4 wrote

ah yes, this is a great idea during a recession!

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oldmatenate t1_j8prqdy wrote

“Automatic pre-approval is now included in Apple One when you sign up for an annual subscription. You’ll also receive a free HomePod mini with any property purchase over a million dollars.”

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Baku7en t1_j8ptcbm wrote

I’m still waiting for the savings account thing promised last fall…

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SirMaster t1_j8puob3 wrote

Huh?

The average home price is like 350K, so it's 100% of a 20% down payment.

But I would do a smaller down payment personally. I can make a way higher return on the cash than the mortgage rates even at current rates.

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papercutninja t1_j8pv7b4 wrote

$350k is average on home purchases, not new home purchases.

In other words, newly built homes, not new-to-you homes.

And it seems my Google ignored my query of “Average cost of new home purchases in the US” and instead just gave me Idaho homes.

My b everyone.

0

Penguin236 t1_j8pxm1s wrote

What are you talking about? Extraordinarily rich people were around long before the 70s. Just look at people like Rockefeller and Carnegie. In today's money, they would've been the richest people in the world, even more so than the likes of Musk and Bezos.

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rouxcifer4 t1_j8pyu5t wrote

I’m an underwriter and see the same thing. It’s really sad. And I even use Afterpay and Klarna, but keep it limited to one or two lines at a time.

I had one applicant have over 27 payments to different buy now pay later companies in one week.

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FloydMcScroops t1_j8q23mu wrote

Still, at the heart of it, needing to offer deferred payments and credit to make a purchase achievable speaks to how broken the system is. Wages are not at the same levels of inflated costs of goods. Costs of good just keeps increasing due to the lessened blow of payment options. This isn’t a nice solution, it’s economic manipulation and preying upon buyers with poor self control.

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Phastic t1_j8q76zf wrote

But what if I buy stuff in store instead of online? Was my $2k laptop all for nothing?

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InUrGutz t1_j8q7hht wrote

“You can expect that if a customer defaults on an Apple Pay Later product, they will not be offered the chance to use it again, and other features of their Apple ID may be disabled until their account is back in good standing.”

So basically ya’ll better pay your loan or apple’s going to lock your Apple ID and brick your shit

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leavin_marks t1_j8qa9bf wrote

Do they really think that only past spending with Apple will be enough? What if you’ve bought all your iPhones through third parties, and don’t make Apple Store purchases?

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nickolove11xk t1_j8qkqb1 wrote

Exactly. There is nothing wrong to me for using any of apples 0% payment plans. Why would I pay upfront for a laptop I need. Some people out there would tell me to pay off my car early and not understand im not paying off a 0% loan.

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TheElderCouncil t1_j8qqeix wrote

I read the article but have a question.

Is there APR of some sort involved? Or you literally just…pay later? Can you pay in chunks?

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ChiefBoss99 t1_j8qr1q7 wrote

Some people are choosing to forgo credit cards and use these services instead. Or people have bad credit and so they do these instead.

I’ve considered doing it for budgeting purposes before (in terms of record keeping monthly instead of it being a lump sum), but I’ve never actually done it before. I could pay for these things upfront but sometimes you want the budget to line up better month over month.

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JwintooX t1_j8qs0cn wrote

It’ll be like paypals pay in 3/4 where you basically just split the original payment up into even monthly chunks (I’ve used it a couple of times for my more expensive sim racing gear), they normally only allow 1 cut up payment at a time. Zero apr / interest, just the amount due. Obviously if you don’t pay then it might go wrong with items being claimed back etc or something like mega fees.

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GenericName187 t1_j8r9d43 wrote

This reminds me of the early 2000s when companies like GM and GE went all in on their financing divisions. That went poorly.

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SlowMotionPanic t1_j8rb3zt wrote

A sad state of our economic situation unfortunately. People will be paying high cost, no benefit (for them) mortgage insurance in lieu of that full down payment for at least 10 years. Considering the average lower premium these days (given prices) is around $1,500/yr that shit really adds up once one realizes they still need property insurance and taxes paid.

I’ve seen many people in my life get excited for an FHA loan since they can afford the tiny down payment, only to realize they can’t actually afford the true full cost because of PMI + escrow.

But if it helps escape being locked in renting then it almost always makes sense.

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mercurialmeee t1_j8rcb3u wrote

Credit is poor but I own a lot of apple stuff. Hopefully this qualifies me lol

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0000GKP t1_j8rkyd8 wrote

>For example, my microwave died and I didn’t want to drop all that $500 at once and I didn’t want to carry a balance on my credit card so I paid for it on my pay day using Pay in 4 with another system and it worked out.
>
>Another was with my car insurance. There’s a $430 discount for paying the premium up front vs monthly. So I just threw the whole thing on Pay in 4 and got the discounted rate.

Budgeting and saving take care of both of these.

I have a "home" category in my savings account. I throw a few dollars in there every month. There's enough to cover new appliances if they break.

I already know the annual premium for my car insurance is $1400. 1400/12 = $116, so that's how much I save into my car insurance category every month.

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hawkiron t1_j8ruixt wrote

As a really basic example, say you have $1200 and you want to buy something that costs $1200. You can either pay $1200 upfront, or you can pay it in $100 no interest installments over a year. If you choose to pay in installments, you can leave the rest of the money in a high-yield savings account and collect interest on it over that year, rather than handing it over right away. This means you can buy the thing you want without sacrificing the full opportunity cost of the money over the period.

Apple loses the opportunity value of getting that money upfront, but they guarantee you are committed to the purchase regardless. Further, it also allows them to secure future earnings from people who couldn't immediately afford a large purchase, like someone who doesn't have $1200 upfront, but has $100 disposable income a month. That person may have decided to forego a purchase altogether or buy something cheaper if not for the option.

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linerstank t1_j8rwgd5 wrote

If there is 0% interest on the purchase, installments is always better than upfront. Because you can invest and play around with the money in the installment time frame and potentially make some money off of your “principal.”

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Nickyweg t1_j8s6omc wrote

This is an excellent way for poor people to buy things as if they’re rich.

“Buy now pay later” is awful because it convinces people they can afford things they have no business buying.

I can’t imagine financing a phone, an appliance, or clothes.

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Early-Abroad-3771 t1_j8t25rm wrote

no wait the car insurance BNPL is wicked smart tho, I just paid for my car insurance up front for the first time and saved bank, but it hurt a little to watch 1k walk out of my account. throwing that bill on a pay in 4 is super smart, lmk if you’ve got any other savvy tips like that

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Celticwinner t1_j8tb7gf wrote

Jeff this is Kyle. I'm really sorry about the situation with your dog and I hope the best for him. But Im in in student acomidation and I'm running low on money and if I don't have enough I'm gone. I think its time to write your wrongs and pay me back my 45 dollars. I think im being pretty decent considering the money I've given you.

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flickh t1_j8undj4 wrote

"We realize quite well that the Enterprise computer system is definitely overpowered in terms of twentieth-century computing applications. On the other hand, the history of computer technology has shown that each time a faster, more powerful computer becomes available, useful applications quickly follow to take advantage of the new machines, which in turn spurs computer designers to build still more powerful machines. One might expect that such trends will yield enormously powerful computers, which one might reasonably hope may significantly enhance the quality of life, as they apparently do for the men and women of the Enterprise."

- Star Trek: The Next Generation Technical Manual

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jadondrew t1_j8uqrxh wrote

Between 1978 and present, CEO compensation has risen 1,460%. Worker compensation has risen 18%. That is what I’m talking about. Cherry picking a few winners does not diminish overall trends.

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NikosPtks t1_j8vk6t3 wrote

And “only in America” like Apple Cash in iMessage

1