Is Afterpay Dangerous?

Since July 2018 2.2 Million people have used Afterpay across Australia and New Zealand. It’s dubbed the modern-day layby, except it’s available at a click of a button and you get the satisfaction of instantly having that dress, shoes or even bed right then and there. While advertised as four fortnightly payments, if you miss a payment you could end up paying a lot more. LiveTribers do you use Afterpay? Do you think payment schemes like Afterpay and Zipay are dangerous? Is the instant gratification worth the stress of repayments?

Posted by on 13 Jul 2020

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    I love it,use it all the time and never missed a payment yet!.If there was no Afterpay I would never be able to afford all the things that I needed and the beauty of it is that I am using my own money and not being charged interest.The trick is just to have one going at the one time and not have any others like Laybuy or Zippay otherwise you will struggle with payments.

    Posted by katzeye on 13 Aug 2020

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    I think it’s a better idea than having credit cards.

    Posted by Katoushka on 13 Aug 2020

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    Personal income self I actually do think that afterpay or zippay a very bad idea to society as people these days and as a society with citizens we don't have enough money as is and if you miss one or two payments will then you just screwed I personally I've never done it I prefer to do a lay-by cos if pay I can't make one payment at least I don't lose my money let no have a default go against my name never mind for those people who are on parenting payments or should I say new start how the f*** can you afford it

    Posted by Nicole on 01 Aug 2020

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    no, not dangerous, someone who has issues with money, will have issues with afterpay or not i love it, dont spend more than i can afford to repay

    Posted by squeekums1 on 20 Jul 2020

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    Yes I think it is dangerous, especially for the vunerable people who want things then and there and then can't afford to pay for them.

    Posted by MsAils on 16 Jul 2020

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    Have never used any of these schemes, but I feel they have much potential to be dangerous. If you do not have the money to buy something, don't buy it. Just save up beforehand. I have previously used lay-by, but I find a lot of businesses are charging quite high service fess for this purpose. However the service fee could be less than the additional charges if you default on the Afterpay payment.

    Posted by petron on 16 Jul 2020

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    So many people caught up in these quick cash schemes. Pay day loans, this afterpay etc. We had lay-byes but you did not get the goods until you paid. This get the goods and then pay is trouble with a capital T. If you cannot afford it don't buy it. Save up and pay for it. Credit cards are charging 20% interest and yet the interest rates are the lowest in history and although they say you have 58 days interest free this is in fact not actually right for every purchase. This free day interest free period is worked out as to when the purchase was made and the date the interest is assessed. Making zillions off the users. I have nearly paid my card down as giving them so much in interest is economic disaster. I now have more money as I am paying less interest and soon it will be no interest. So yes these schemes are dangerous and can get you into quicksand financially very quickly.

    Posted by coaster on 16 Jul 2020

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    Under certain circumstances definitely.

    Posted by Mamacins on 16 Jul 2020

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    Depend on the items,

    Posted by Angela on 15 Jul 2020

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    Easy credit has always been a trap for those with poor self control. You reap what you sow including overbearing debt. Tread carefully and be patient!?

    Posted by mact on 15 Jul 2020

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    I know what it is & know how to use it, but avoid it all the same. There's also Humm & Zip Pay along with others. If you can't afford it, don't buy it. Use hand-me-downs, second-hand, gifts, gift cards from doing surveys :-). People are throwing out their beds on the roadside, so learn how to strip them down and refurbish them. Stay out of debt and find ways to reduce your total living expenses without compromising your quality of life. Think of it like you're at war with the system, if it helps motivate you. Don't get so you're falling behind on mortgage payments; we're one of those countries that can throw you out on the streets and still force you to make payments on that house when you're not living there.

    Posted by vegandelight on 15 Jul 2020

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    If you use Afterpay and Zip responsibly, there's no problem. It's just like anything. You have to evaluate whether or not you can afford the product or item, even with the fortnightly repayments

    Posted by Kitty000 on 15 Jul 2020

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    I have used afterpay and zip I find it great i can afford repayments some people would abuse it

    Posted by pinkf on 13 Jul 2020

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    Personally I don't use them. They are okay, providing you meet all of your repayments on time. If not, I would say they would be expensive to use. Credit card interest rates are normally 20 to 30% per year. Credit cards are only good to use if you repay them in full every month (don't take cash out of ATM), and that way you are not paying any interest at all. I have seen several retail stores offer this facility. I don't know if you can use afterpay or zippay on line. Be aware that when you use after pay or zip pay, they will always do a credit check (using your driver's licence). You don't want to use them too often as it may lower your credit rating and make it harder to get a loan or credit card. Layby is probably a much better option as you pay a very small service fee and it doesn't affect your credit rating at all. They don't use a credit check for layby.

    Posted by tassiegirl on 13 Jul 2020

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    This is all a new concept for me and have only heard about it and don 't know much about it . However the principle sounds very much like Bankcard when it was first introduced , and people were very wary about it and it was just about given (physically) to everyone that had a bank account , and many just cut them up , now we have so many company's offering credit cards it's now the norm to have at least one . I guess it all goes back to how responsible an individual is in managing money . I do have two doubts of this purchasing medium , one is the interest rates charged on default payments ie. do they align realistically with the Reserve bank cash rates , as credit card rates are off this planet . I do understand that the rates charged must include a risk factor , but not as high as cards are at the moment . The second concern is if one can purchase any goods or services on line using this facility , this also adds to the demise of retail vendors and staff . We all seem to complain about banks and the government mismanaging taxpayers funds , spending on unnecessary areas instead of concentrating on providing jobs and caring for the socioeconomic disadvantaged . I know i'm digressing from the main issue , but were are the masters of our density and if we are genuinely caring about credit and spending , don't buy online , save Aussie jobs , i'm sure Jeff Bezos can afford it , i'm not saying don't buy and seek credit as debt is what makes the economy prosper , Get off the computer and talk to a real person and keep them employed , if you can't do that then it is instant gratification and greed !

    Posted by robert on 13 Jul 2020

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    It's up to the user as to how dangerous it is. If the user can budget properly and can afford to repay the debt incurred it may not be too dangerous. However if they use the loan money to pay off other loans it's bad. When I see the current debt levels of so many of the 'entitled generation' I just shake my head and worry how they will ever survive in this new Covid 19 world we are in.

    Posted by ere on 13 Jul 2020

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