Banks are very loanly: A new study proves what we all know: In-person banking is on its way out, and the number of physical branches is dwindling. Since 2018, an average of 1,646 branches have closed annually in the U.S. At this rate, physical branches could be extinct by 2041.
Buy now, pay later isn’t as simple as you think
You see them on about every shopping site now. Think of “BNPL” (buy now, pay later) as a short-term financing plan. With a few clicks, you request a limited loan agreement to pay for items over time.
Even Apple is getting in on the action. With Apple Pay Later, buy that $1,000 iPhone today and pay it off over four payments. PayPal has one, too, along with services like Afterpay, Affirm and Klarna.
I like to put on my detective hat (it looks like Columbo’s) when a new wave of financing apps like these pops up. They can feel a little … scammy. Hidden strings can lead to unexpected charges, unpleasant contracts and new debt disasters. Not cool! But certain BNPL apps with “soft” credit checks, like Apple’s service, can help manage payments.
Don’t worry. I’m on the case! If you or a loved one is using buy now, pay later apps, I’ve got the red flags you need to watch for to avoid rotten deals.
Red flag 1: Sneaky interest rates
Almost all BNPL apps say they have “zero interest payments.” For some, like Apple, that’s true. If you make payments to your Apple Card account on time, you won’t accrue interest. But BNPL apps aren’t well-regulated, and some make false promises and hide interest rates in the fine print.
Sorry to say, but you need to grab your reading glasses. Check every line and link of fine print for hidden interest rates. As a rule, don’t accept any form of interest rate, even 1% or 1.5%. That may sound great on a mortgage — but you can get these mini loans for zero interest!
Red flag 2: Hidden fees
Late fees are standard for BNPL apps. Miss a payment? You’re gonna get some heat. But hidden fees are the real worms in the apple. Surveys have found that almost 30% of people who use BNPL run into problems, like being overcharged for a purchase for no reason. No good.
Hit the Better Business Bureau site and check for anything concerning before you say “Yes, please.”
Red flag 3: You can’t buy that
Even reputable BNPLs have limits. They’ll only work with specific merchants, for example. Check to see if that big purchase is covered before signing up.
Hackers want Google accounts. Give yours this security check now!
Here’s a nightmare scenario: You’re enjoying your hard-earned vacation when you realize your phone or laptop is missing.
Beyond the cost of replacing it, you may have lost years of photos and other files — and opened yourself up to some pretty scary consequences. Tap or click for steps to wipe your tech remotely in case this ever happens.
$100,000 set aside
By Minnesota lawmakers to buy Dorothy’s stolen ruby slippers. They could go for 100 times that at auction. The shoes were stolen in 2005 while on loan from their owner to the Judy Garland Museum in Grand Rapids, Minnesota (her hometown). After being recovered in 2018, they’ll be back up for sale at the end of the year.
Gas prices are the highest they've ever been - How to find the cheapest prices
If you want a decent car, you’ll likely need to take out a loan. Then there’s insurance on top of that. And if your vehicle breaks down after the warranty expires, you’re looking at thousands of dollars worth of expenses. Tap or click here for a great warranty alternative that could help you save big time.
247 million views
On TikTok to erase one guy’s student loan debt. Jake Heisenburg went viral on TikTok trying to make it happen. He challenged people to help him pay off his loans by watching a 60-second video of him eating cereal. He’s only at 26 million so far, but that’s about $4,200 in loans. Not bad.
Child ID theft is on the rise: If you’re not on the lookout, you might not catch it for years. When your kid goes to rent their first apartment or get a student loan, they could find they’re already thousands of dollars in debt. Protect your kid’s credit now — I’ve got steps on how to do it on my site.