Latest / Triple Da Money / WE TURNED "PAY IN 4" INTO A COMPETITION... ONE OF US LOST EVERYTHING

Transcript

WE TURNED "PAY IN 4" INTO A COMPETITION... ONE OF US LOST EVERYTHING · Triple Da Money

• 0:00
  SPEAKER_01: Say it again?
• 0:01
  SPEAKER_01: You would fall for it.
• 0:02
  SPEAKER_01: I have never fallen for anything in my entire life.
• 0:05
  SPEAKER_01: You ate an entire basket of bath salt just because it was labeled CISA.
• 0:10
  SPEAKER_01: We agreed, we don't talk about that one.
• 0:12
  SPEAKER_00: Today we're gonna find out which of my brothers is worse with money.
• 0:16
  SPEAKER_00: And spoiler alert, it's both of them.
• 0:19
  SPEAKER_01: And that was the day when I learned what minimum payment means.
• 0:23
  SPEAKER_01: Anyway, you'd fall for it.
• 0:25
  SPEAKER_01: Here's the bet we both use buy now, pay later apps like Klarna and Afterpay.
• 0:30
  SPEAKER_01: For one shopping trip, whoever ends up further ahead wins.
• 0:34
  SPEAKER_02: And whoever loses has to admit on camera the other one is smarter.
• 0:39
  SPEAKER_01: Forever on the internet, permanently.
• 0:43
  SPEAKER_02: Deal, because unlike you, I don't fall for marketing.
• 0:46
  SPEAKER_01: You cried during the magic show because you thought the assistant was actually cutting off.
• 0:51
  SPEAKER_02: She screamed, Brandon.
• 0:53
  SPEAKER_00: Okay, so before either of them actually touches an app, let's explain what they're about to do.
• 0:58
  SPEAKER_00: Because right now, neither of them understands the game they just agreed to play.
• 1:04
  SPEAKER_00: Buy now, pay later, takes one purchase and splits it up into smaller pieces.
• 1:09
  SPEAKER_00: Usually about four payments instead of one big one.
• 1:12
  SPEAKER_01: So it's basically a payment plan?
• 1:14
  SPEAKER_00: It's a loan wearing a payment plan's clothes.
• 1:17
  SPEAKER_00: The short plans, the four payment ones, can really be zero interest, but only if you pay it back on time.
• 1:24
  SPEAKER_00: But a lot of these companies do offer longer plans.
• 1:27
  SPEAKER_00: Months, years even, and those do carry interest.
• 1:31
  SPEAKER_00: Sometimes they're even worse than a credit card.
• 1:34
  SPEAKER_02: So there's a nice version and a naughty version.
• 1:37
  SPEAKER_00: And they look almost identical at checkout.
• 1:40
  SPEAKER_00: That's on purpose.
• 1:41
  SPEAKER_01: Okay, but if it's four payments of 30 instead of one payment for 120, that's still 120, right?
• 1:48
  SPEAKER_00: Exactly the same amount, but completely different feeling.
• 1:52
  SPEAKER_00: That's the point.
• 1:53
  SPEAKER_00: And it's the first thing you both need to understand before either of you touches any of that.
• 1:57
  SPEAKER_01: Try to keep up.
• 1:58
  SPEAKER_01: You won't stop a stop sign was a suggestion.
• 2:01
  SPEAKER_01: It was raining.
• 2:03
  SPEAKER_00: Okay, but here's the part that nobody explains.
• 2:05
  SPEAKER_00: These companies get paid twice on the same purchase.
• 2:09
  SPEAKER_02: How do you get paid twice off just one thing?
• 2:12
  SPEAKER_00: First payment comes from the store.
• 2:14
  SPEAKER_00: Every time you check out with one of these apps, the store hands the company a cut, bigger than what a credit card charges.
• 2:20
  SPEAKER_00: The store's fine with that because people buy more and buy more often when the number in front of them looks smaller.
• 2:26
  SPEAKER_01: So the store is basically paying them to trick me?
• 2:29
  SPEAKER_00: The store is basically paying them to make you spend more.
• 2:32
  SPEAKER_00: The second payment comes from you.
• 2:34
  SPEAKER_00: If everyone pays on time, the company still makes money from the store's cut.
• 2:37
  SPEAKER_00: But a huge amount of their actual profit comes from when people don't pay the store on time.
• 2:42
  SPEAKER_00: Late fees, and the longer plans have real interest.
• 2:46
  SPEAKER_02: So they kind of need people to mess up?
• 2:48
  SPEAKER_00: They basically built a business that profits either way, but profits way more when you slip.
• 2:53
  SPEAKER_00: That's not a conspiracy theory.
• 2:54
  SPEAKER_00: That's just the math of the industry.
• 2:56
  SPEAKER_01: So this whole time, I've been the product?
• 2:59
  SPEAKER_00: Last piece, then you two can go just destroy your finances.
• 3:03
  SPEAKER_00: Thank you.
• 3:07
  SPEAKER_00: New accounts start small, a tiny limit.
• 3:10
  SPEAKER_00: Basically nothing.
• 3:10
  SPEAKER_00: Pay it back on time and they trust you a little bit more and they raise it.
• 3:14
  SPEAKER_00: Pay it back, they raise it again.
• 3:16
  SPEAKER_00: It's a ladder.
• 3:17
  SPEAKER_02: Okay, that seems fine.
• 3:19
  SPEAKER_00: It's fine until people climb multiple ladders without telling anyone, including themselves.
• 3:23
  SPEAKER_00: That's loan stacking.
• 3:24
  SPEAKER_00: You've got Clarner for one thing, Afterpay for another, and a firm for a third.
• 3:30
  SPEAKER_00: None of these apps can see that you're using the other ones.
• 3:32
  SPEAKER_00: Only you can see the whole picture.
• 3:34
  SPEAKER_00: And most people never really add it up.
• 3:37
  SPEAKER_01: So it sneaks up on.
• 3:39
  SPEAKER_00: And now more of this is showing up on actual credit reports.
• 3:43
  SPEAKER_00: Which means whatever you buy today on one of those apps can follow you around when you try to rent an apartment or buy a car.
• 3:50
  SPEAKER_02: Good thing that would never happen to me.
• 3:54
  SPEAKER_00: You once forgot our birthday.
• 3:56
  SPEAKER_02: I don't know.
• 3:56
  SPEAKER_02: I must have been busy that week.
• 3:58
  SPEAKER_00: Okay, fine.
• 3:59
  SPEAKER_00: Go.
• 4:00
  SPEAKER_00: Both of you, shop.
• 4:01
  SPEAKER_00: Let's see what happens.
• 4:02
  SPEAKER_02: New account.
• 4:03
  SPEAKER_02: This should be smooth sailing.
• 4:06
  SPEAKER_02: $50?
• 4:07
  SPEAKER_02: That's not even a real number.
• 4:08
  SPEAKER_02: That's an insult.
• 4:10
  SPEAKER_00: It's a truss ladder.
• 4:11
  SPEAKER_00: You're on the bottom run.
• 4:12
  SPEAKER_00: Everyone starts there.
• 4:13
  SPEAKER_02: Okay, fine.
• 4:14
  SPEAKER_02: I'll buy one sock.
• 4:16
  SPEAKER_01: A single sock?
• 4:17
  SPEAKER_01: Did they at least let you pick the good foot?
• 4:19
  SPEAKER_02: It's a completely wearable sock, Brandon.
• 4:22
  SPEAKER_01: Ooh, now we're speaking the same language.
• 4:24
  SPEAKER_01: Xbox approved.
• 4:26
  SPEAKER_01: Headphones approved.
• 4:27
  SPEAKER_01: And a new kayak approved.
• 4:29
  SPEAKER_02: You don't even live near a lake, Brandon.
• 4:31
  SPEAKER_01: I have goals.
• 4:34
  SPEAKER_01: See, that's four separate$30 problems.
• 4:37
  SPEAKER_01: I could solve one of them in my sleep.
• 4:39
  SPEAKER_00: That's the checkout trick working on you in real time.
• 4:42
  SPEAKER_00: I just explained this to you like 30 seconds ago.
• 4:45
  SPEAKER_01: I heard you, but I chose violence anyways.
• 4:48
  SPEAKER_01: I currently owe nobody anything.
• 4:50
  SPEAKER_01: My sock is paid in full.
• 4:52
  SPEAKER_01: Guys, I have five of these apps open right now.
• 4:55
  SPEAKER_00: And do any of them know about the other four?
• 4:58
  SPEAKER_01: No.
• 4:59
  SPEAKER_02: That's loan stacking.
• 5:00
  SPEAKER_01: I was paying attention.
• 5:02
  SPEAKER_01: Don't do that.
• 5:02
  SPEAKER_01: Don't do that right now.
• 5:03
  SPEAKER_01: This is not your moment.
• 5:05
  SPEAKER_00: Check your payment schedule, Brandon.
• 5:07
  SPEAKER_01: Payment two on the kayak was due 11 minutes ago.
• 5:14
  SPEAKER_01: Sock guy wins.
• 5:15
  SPEAKER_01: So the kayak, a great decision at the time.
• 5:19
  SPEAKER_01: Turns out it wasn't the kayak that got me.
• 5:21
  SPEAKER_01: It was the four other easy payments.
• 5:24
  SPEAKER_01: Stacked on top of it from apps that had no idea the others existed.
• 5:29
  SPEAKER_02: Meanwhile, I own one sock.
• 5:31
  SPEAKER_02: Since I was 17, I have excellent credit and I don't live in a garage.
• 5:37
  SPEAKER_01: Like somebody.
• 5:49
  SPEAKER_01: Turns out he's not thrilled about it.
• 5:53
  SPEAKER_01: I'm gonna look at exactly how many payments I have due this week.
• 5:57
  SPEAKER_01: Sat guy wins.
• 5:58
  SPEAKER_02: Say it, Brandon.
• 5:59
  SPEAKER_01: Uh okay, you're smarter than me.
• 6:01
  SPEAKER_01: Louder! I said it once.
• 6:03
  SPEAKER_01: That was the deal.
• 6:04
  SPEAKER_00: For the record, he didn't win because he was smart.
• 6:07
  SPEAKER_00: He went because they only trusted him with$50.
• 6:10
  SPEAKER_02: I still take it.
• 6:12
  SPEAKER_00: Here's the full thing.
• 6:13
  SPEAKER_00: Buy now, pay later, splits one payment into a few little payments that just make the whole transaction feel easier.
• 6:20
  SPEAKER_00: The company gets paid by the store, and they get paid by you if you let things slip.
• 6:26
  SPEAKER_00: Your limit grows slowly as you earn their trust, but stacking multiple apps on top of each other is how you ruin it completely.
• 6:34
  SPEAKER_00: And now it can follow you onto your real credit report.
• 6:38
  SPEAKER_01: Before you hit pay in four, ask if you'd still buy it if all four of the payments came out of your pocket today, right now.
• 6:45
  SPEAKER_02: If the answer's no, the answer's no.
• 6:47
  SPEAKER_02: We're triple the money.
• 6:48
  SPEAKER_02: One sock, zero debt, know what you are.
• 6:51
  SPEAKER_01: And I have a kayak with no link.
• 6:54
  SPEAKER_01: Subscribe.