So is this the end of Afterpay in Australia now that the Governmemnt has new regulations ?

[intel54]

Buy Buy Afterpay,  it was nice knowing you , hello credit cards and another ripp-off by the  new government !  This is supposedly to protect the consumer from over endulging lol .  Hmmm doesn't seem like the government wants to regulate how much we spend at the pokies 😉

[*sons_and_daughters*]

I agree. People get so full of line of credit, that they feel their world is over when it's cut off. Maybe it's cut off for their own good!

As for credit cards, yes I have one. It has a $500 limit. It's there for emergencies only. For example, I blow 3 tyres the day before pay day. If I can't afford to buy something, I don't. For the last 25 years, my bank keeps sending me letters offering to increase my limit. They go ignored. In the event I do use my $500 limit, even if I found myself out of work and on the dole, I could afford the repayments. For someone with a $10,000 limit, which most have these days, and is usually maxxed out, I'd be screwed.

[jellybirddesigns]

We don't like taking loans or credit of any sort, but do understand that under certain circumstances it can be beneficial ie: home loan. However, we always overpay on the loan to reduce the mortgage length and interest that the bank gets as quickly as possible.

We do have credit cards, but for the last 30 years we have made sure we pay the full amount due every single month. Have not paid credit card interest.....ever.

Will never ever use options like Afterpay, ZipPay, etc. If someone can't handle a standard credit card, they'll get into hot water fairly quickly, especially if they have no self control.

[michellebartley]

I use Afterpay, Zippay, Openpay, Humm + PayPal pay in 4, they always do a credit check when you sign up. Zippay have a monthly accounting fee if you haven’t paid them all back (my limit is $300.00.) There is no interest on these services like credit card. I can now afford to buy items that I couldn’t have previously done.

It just makes my life a little bit easier. 

[domino-710]

There is interest - if you default - between the merchant & the user - that's how they make their money.

[*sons_and_daughters*]

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@michellebartley wrote:

I use Afterpay, Zippay, Openpay, Humm + PayPal pay in 4, they always do a credit check when you sign up. Zippay have a monthly accounting fee if you haven’t paid them all back (my limit is $300.00.) There is no interest on these services like credit card. I can now afford to buy items that I couldn’t have previously done.

It just makes my life a little bit easier. 

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Miss a payment and see what happens. Credit card interest might be 18-25%. These loan places, could be up to 50% if you really play up. It's mostly low income people who sign up to these things. They are the ones most likely to default and get themselves into strife. Then it's everyone else's fault, especially the company, because they are up to their eyeballs in debt.

A few years ago, I was shopping with my step daughter and she saw a tie in a menswear shop that she thought her soon to be husband would love. It was $18. I was stunned when she After Pay'd it. I asked what she was thinking? She is not a low incomer person. In fact, she earns more than me. Apparently, despite having a good pay, and a modest amount in her savings account, she does that with most things. Why? I have absolutely NO idea, when she doesn't need to do so. 

[jellybirddesigns]

I agree @sons.

Anyone who uses these services may also have issues when trying to get a loan from the bank.

Any debt will affect their ability to borrow and banks often feel that if they have to resort to BNPL methods of payment, they may not be able to handle bank credit responsibly.

I know that when we applied for our home loan, they specifically checked if we had any BNPL accounts and we would have ended up with less borrowing capacity if we did.

[domino-710]

It should be known - when approaching a bank - etc - that a Credit Card Limit - has an affect on your borrowing capacity.

You may not have used the available credit - but it can be considered a debt - simply because it is there to spend.

[janeababe]

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@michellebartley wrote:

I use Afterpay, Zippay, Openpay, Humm + PayPal pay in 4, they always do a credit check when you sign up. Zippay have a monthly accounting fee if you haven’t paid them all back (my limit is $300.00.) There is no interest on these services like credit card. I can now afford to buy items that I couldn’t have previously done.

It just makes my life a little bit easier. 

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OMG! I think you just gave me grey hair, with that opening sentence!!!!! 

[papermoon.lady]

I had never heard of HUMM...