What Buy Now Pay Later methods do you use? Afterpay? Zip?

[Zaxon]

As an owner of BNPL shares, I'm interested in what percentage of ASF readers use installment payment accounts, and if you use one, are you typically likely to own a second BNPL method as well?

 

[So_Cynical]

I use a credit card.

 

[Zaxon]

I use a credit card.

Oh yup. I've added that to the poll, but only where people carry over their balance.

 

[greggles]

I voted that I never use them but by that I mean that I haven't used them yet. It's possible that I may at some point but as yet I haven't needed or had the inclination to do so.

 

[Zaxon]

Personally, I don't use BNPL. For a lot of Millennials and Gen Zs, it seems to be a part of their "culture". And I think for families that live paycheque-to-paycheque, some have no choice when it comes to big payments like dental bills.

 

[Sdajii]

I've never bought anything I couldn't afford. Unless you need a car for work and you're just starting out, or you need a loan for a house (this is the big one which is understandable), or perhaps in some unusual situations, it just seems silly. To use it for luxuries is absurd.

 

[Cam019]

I use a credit card.

Likewise. Balance is always paid before the interest free period is up. I never pay interest.

 

[StockyGuy]

Haven't had to revolve credit card balance in MANY years, but important to have the option.

Those young'uns often have mentally crippling HECS debts, so taking on bit more debt taken too lightly.

ASF would be a shrewd lot on average, so BNPL probably less popular among us.

 

[Zaxon]

Those young'uns often have mentally crippling HECS debts, so taking on bit more debt taken too lightly.

Seems so. Firstly the "young'uns" probably have limited savings, if any. And as you say, don't appreciate the importance of clearing their debts. I think there's a certain amount of "I deserve it" (even if I can't afford it) going on. But I guess you get that in every generation.

ASF would be a shrewd lot on average, so BNPL probably less popular among us.

So far 100% of ASF pay up front. Perhaps the others are yet to vote.

 

[Zaxon]

I've never bought anything I couldn't afford. Unless you need a car for work and you're just starting out, or you need a loan for a house (this is the big one which is understandable).

First car and first house is completely understandable.

 

[aus_trader]

I also use credit card option. Pay the balance each month, err pretty much every time, except holiday time . Other debt include home loan. Car is fully paid off and shares are bought with savings, no margin.

I've seen the Zip pay / Afterpay option at the checkout at many online purchases, but so far haven't used them personally:

 

[Zaxon]

I've seen the Zip pay / Afterpay option at the checkout at many online purchases, but so far haven't used them personally:

The first time I came across them was a little while back when Kmart had great big Afterpay logos by their entrances. I had to ask what this "strange thing" was. Soon after, the world seems to have gone BNPL crazy. Except for ASF, where it appears to be against our religion.

 

[Smurf1976]

Except for ASF, where it appears to be against our religion.

My thinking goes like this:

ASF is a stock market forum.

Anyone on a stock market forum presumably invests in shares or plans to do so in the near future.

To be investing in shares requires that the individual has at least some money over and above that required to feed, clothe and shelter themselves.

That being so, the demographic of this forum isn't one that's likely to need to split a $50 purchase over four installments due to not having access to $50 in one go.

So I'd think that whatever answers members of ASF give isn't going to reflect the general community since whilst not outright mutually exclusive, the notion of investing in shares and needing to borrow money to buy a new toaster don't really go together.

 

[Zaxon]

My thinking goes like this:
So I'd think that whatever answers members of ASF give isn't going to reflect the general community since whilst not outright mutually exclusive, the notion of investing in shares and needing to borrow money to buy a new toaster don't really go together.

I think you've made a very good point. While we're politically and personality diverse, it does make sense that if you're a part of ASF, you can probably cover your basic bills. So far the polling results support that.

 

[Value Collector]

Likewise. Balance is always paid before the interest free period is up. I never pay interest.

Same

 

[Smurf1976]

I use a credit card as a convenient method of payment, it avoids the hassle of messing about with cash, but since the balance is always paid off in full that's all it really is - a payment method.

On the subject of cash - I've only used it on two occasions this year thus far so it's not quite extinct in my life but it's damn close. Pretty much everything I buy goes on the credit card apart from bills which I pay online.

 

[So_Cynical]

I never use BNPL (14) Votes = 100.0%

We are obviously not a bunch of hip millennial's.

 

[Zaxon]

I use a credit card as a convenient method of payment, it avoids the hassle of messing about with cash, but since the balance is always paid off in full that's all it really is - a payment method.

I've always wondered why people do this. I use a debit card. Essentially acts like a credit card, but acts like EFTPOS on the back end. That sounds like how most ASF members use their credit card anyway if they pay it off in full each month, so why have a credit card in the first place?

The only reasons I can think of are: 1) to get reward points of some sort, but then your card will probably have a yearly fee. Debit cards are fee free. Or 2) In case you need some emergency money like @aus_trader mentioned before, in which case a debit card won't suffice.

 

[StockyGuy]

I've always wondered why people do this. I use a debit card. Essentially acts like a credit card, but acts like EFTPOS on the back end. That sounds like how most ASF members use their credit card anyway if they pay it off in full each month, so why have a credit card in the first place?

The only reasons I can think of are: 1) to get reward points of some sort, but then your card will probably have a yearly fee. Debit cards are fee free. Or 2) In case you need some emergency money like @aus_trader mentioned before, in which case a debit card won't suffice.

Hmmm, other reasons for some include a few years ago Aus moved to that trashy US style of credit rating whereby exhibiting ability to pay off credit raises your credit score; and credit card transactions are supposed to be more secure.

It's good policy to have a second card in the wallet in case of problem with the debit card.

I have couple direct debits on credit card. It's good for seeing exactly what's coming out with DDs - when they're coming out of savings account it's easy to miss among the usual day to day stuff.

 

[aus_trader]

I've always wondered why people do this. I use a debit card. Essentially acts like a credit card, but acts like EFTPOS on the back end. That sounds like how most ASF members use their credit card anyway if they pay it off in full each month, so why have a credit card in the first place?

The only reasons I can think of are: 1) to get reward points of some sort, but then your card will probably have a yearly fee. Debit cards are fee free. Or 2) In case you need some emergency money like @aus_trader mentioned before, in which case a debit card won't suffice.

Yes true, credit card does give you the convenience of paying up-front especially if you are on an overseas holiday. That's usually the only time it can get worked up a bit but I usually pay it off in a couple of months once I return. Otherwise my balance is quite reasonable just paying the bills and for food and fuel that I pay it off in full at the end of the month.