Valuetainment - August 06, 2025


＂Botox Payment Plans＂ - Buy Now Pay Later Programs DESTROY Gen Z & Millennials' FINANCES


Episode Stats

Length

13 minutes

Words per Minute

186.77702

Word Count

2,535

Sentence Count

259

Misogynist Sentences

1


Summary

A generation is turning to BNPLs for Botox and concert tickets, a Wall Street Journal article says. Buy-now-pay-later loans is the worst thing for consumers since payday loans, a new report says.


Transcript

00:00:00.000 So buy-now-pay-later loans, a generation is turning to buy-now-pay-later for Botox and concert tickets.
00:00:07.020 This is a Wall Street Journal.
00:00:08.300 Can you imagine people are using buy-now-pay-later for Botox and concert tickets, page 16?
00:00:17.700 So buy-now-pay-day loans is the worst thing for consumers since payday loans, the BNPL.
00:00:23.980 Stats are finally coming out that has become financially destructive force with a 2023 TransUnion report showing BNPL usage soared 43% in a year, 40% of users missing at least one payment, often facing hefty late fees and aggressive collections.
00:00:40.160 And a report came up indicating that in households charging insufficient funds, fee 85% would also charge an overdraft fund.
00:00:47.780 BNPL is a danger because it doesn't feel like debt.
00:00:51.560 Masking the risk by presenting payments as a $25 a week is an illusion, and it's getting bigger and bigger.
00:00:59.060 Ashland Dagger, 22 years old, used BNPL loans from a firm, a financial technology company, starting at 18 years old with a 30% interest rate loan for $1,100 mattress,
00:01:10.020 later financing groceries, haircuts, eyelash extensions, leading to nearly $4,600 in debt with $771 monthly payment.
00:01:18.900 She said initially it starts off with necessities, and to me it was just $20 a month.
00:01:24.020 Here, $20 a month.
00:01:25.620 They're not $1,000 debt.
00:01:26.800 A June report that Bank of America Institute noted a surge in such loans amongst young Americans who face a tougher employment picture and higher prices, using them for necessities.
00:01:37.020 Yadira Lara, 28, financed a $900 Botox and filler injections with Klarna.
00:01:44.240 Think about that, okay?
00:01:45.960 And a Swedish bank of a TikTok video.
00:01:49.080 Before you come at me with who has that kind of money, Klarna does, and you can use Shine, Amazon, Temu, use it for your face, okay?
00:01:57.120 Just make payments on it.
00:01:58.480 That's what she's saying.
00:01:59.400 And now you're seeing data from National Bureau of Economic Research.
00:02:02.100 Klarna reported 17% year-over-year increase in consumer credit losses, hitting $136 million in the first quarter.
00:02:09.140 Tom, we've talked about BNPL before.
00:02:11.820 By the way, is this the lady that's talking about she used the – yeah, that's her right there.
00:02:17.460 Tom, your thoughts on the story.
00:02:19.260 So we've been talking about this for a while.
00:02:20.900 And if you go back in history, and you can go back about 15 years, the auto industry wanted to sell more cars.
00:02:28.020 So they started doing what's called subprime auto loans.
00:02:32.140 Subprime was their term for the lower half of the middle class subprime borrowers.
00:02:37.460 So there was higher risk but higher interest rates, and the auto industry loved it because they were able to sell more cars to say, you can get in the car with a payment, not telling them that that $15,000 Toyota Corolla was going to cost you almost $20,000 by the time you're done with that 14% loan.
00:02:57.860 So that's typically how sectors of the economy have used alternative financing to get to next levels of consumers.
00:03:07.560 And unfortunately, those levels of consumers are thinking payment.
00:03:10.940 They're not thinking about ultimate cost.
00:03:14.320 Guess what?
00:03:14.760 BNPL originally was not on credit reports.
00:03:17.880 And on this podcast, we were screaming about it saying people don't necessarily understand what they're doing.
00:03:24.420 And we saw what happened on Black Friday.
00:03:25.980 Remember that, Vinny?
00:03:26.820 We were looking at those Black Friday stats.
00:03:28.860 And then what happened on Valentine's Day?
00:03:31.280 Happy Valentine's Day.
00:03:32.440 I'm missing a payment.
00:03:33.740 Missing a payment on the TV that I bought at 18% or more interest rate.
00:03:38.520 Now, within the last 12 months, we, on this podcast, we cheered when BNPL had to be on your credit report.
00:03:47.580 Why is that important?
00:03:48.420 The credit report is an important mechanism so that consumers know what they can afford, but they're also rated appropriately.
00:03:56.260 And consumers with less education about how these mechanisms work could be controlled on who could say, hey, you don't qualify.
00:04:03.140 Why don't I qualify?
00:04:04.480 You have too much debt.
00:04:05.400 What do I have too much debt on?
00:04:06.580 And there could be some sort of a counseling or a discussion or a triggering mechanism to get them to do it.
00:04:11.860 And then credit card companies are giving you free access to your credit report.
00:04:16.580 That's a good thing.
00:04:17.580 Now we're seeing here BNPL is being used for things like Botox.
00:04:23.240 BNPL average is almost six months.
00:04:25.640 I looked up this morning and they said Botox in your forehead or for wrinkles, you know, in your face is about a three and a half month.
00:04:34.600 Then the Botox wears off.
00:04:36.300 And by the time you get to four and five months, the wrinkles and things are coming back.
00:04:39.980 So that means that if you keep BNPL for an average of five and a half, six months, it's a month and a half after the Botox is worn off.
00:04:49.100 And you're saying that's been your experience.
00:04:52.260 Let me take a look.
00:04:53.500 It's horrible.
00:04:53.820 Let me take a look, Tom.
00:04:54.660 Horrible.
00:04:55.120 I gave up on it.
00:04:56.180 Tom, you don't look a day over 60.
00:04:57.620 I stopped the Botox for this reason.
00:04:59.400 And they put the BNPL on my credit report.
00:05:01.420 I was all pissed off.
00:05:02.160 But the point here is now we are getting into teenagers and young people in their 20s, young adults who are putting this using BNPL because to sell you the Botox, guess what they're doing?
00:05:16.520 If your credit card doesn't have enough limit and say, oh, PayPal.
00:05:20.000 Well, PayPal is connected to my checking account, my credit cards.
00:05:22.440 Oh, I can go to Klarna and Affirm.
00:05:24.940 And then Klarna and Affirm talk about – Klarna says $136 million in consumer credit losses.
00:05:33.920 BNPL is turning out to be not a convenience to turn purchasing a TV into weekly payments.
00:05:40.940 Tom, the reality of it is the following.
00:05:42.620 Here's the reality of it.
00:05:44.000 You know, the other day I'm driving in my car with Brooklyn and – no, Senna and Dillon.
00:05:49.320 And Dillon says, I think they should make cigarettes illegal if it kills people.
00:05:55.380 Really?
00:05:56.060 Yeah.
00:05:56.940 Okay.
00:05:57.980 How many people do you think die from cigarettes versus car accidents?
00:06:00.860 I don't know.
00:06:02.160 I said, so we looked at the numbers, whatever the number was, 35,000 people die every year from car accidents.
00:06:06.920 And then the number of people that die from cigarettes, it was astronomical, like 10 times more, give or take.
00:06:12.000 I think if the number shows up, yeah, cigarettes, 40,000 people die from car accidents every year.
00:06:19.540 Should we make cars illegal?
00:06:22.240 No.
00:06:23.280 Should we make cigarettes illegal?
00:06:24.680 Yes.
00:06:25.200 Why?
00:06:26.380 Well, because I think we should make it illegal.
00:06:28.040 Should we make alcohol illegal?
00:06:29.080 I don't think so.
00:06:29.860 Why not?
00:06:31.020 Alcohol also kills a lot of people.
00:06:32.360 Well, I just – so the reality of it is the following.
00:06:35.520 You go to the store, you have to control yourself from not using it.
00:06:40.020 Yep.
00:06:40.320 We can put the onus on the companies, but if you can't afford to buy something, don't buy it.
00:06:47.400 If you can't afford to go buy something that's out of your league and you're trying to impress somebody, don't do it.
00:06:53.060 First time I bought a Rolex, I was 35 years old.
00:06:55.200 I could have afforded a Rolex at 26 years old.
00:06:57.540 I didn't buy a Rolex until I was 35 years old.
00:06:59.600 I didn't have a need to.
00:07:00.300 I waited.
00:07:00.860 I put the cash aside to kind of – so I do understand when we make these videos and the stuff that we say about BNPL
00:07:09.340 and what they're doing and credit card companies, all this other stuff.
00:07:11.660 You know what I found?
00:07:12.440 I wish I would have brought my backpack.
00:07:13.680 I brought a bunch of props to show.
00:07:15.560 I found a financing company in Clarksville, Kentucky called FMAC.
00:07:22.880 FMAC, if you're still around, you guys got me good at 18 years old.
00:07:26.660 What does that F stand for?
00:07:28.380 Financial.
00:07:28.960 Type in FMAC.
00:07:29.680 What is it?
00:07:29.920 Because if it's the word I'm picking up, I'm just going to apologize in advance.
00:07:32.500 FMAC Clarksville.
00:07:33.920 Can you type in FMAC?
00:07:35.000 They're probably out of business.
00:07:36.160 They're probably not even around.
00:07:37.520 Type in FMAC Clarksville just in – no, one word, Rob.
00:07:40.360 FMAC Clarksville.
00:07:41.980 And if you just put it in Google, it should come up.
00:07:44.420 Just put it in Google.
00:07:45.160 Let's see what comes up.
00:07:46.000 FMAC Clarksville.
00:07:48.720 I remember these guys.
00:07:50.080 Oh.
00:07:50.700 All right.
00:07:51.960 No, no.
00:07:52.600 It's FMAC Clarksville.
00:07:53.640 So I'll find what the name of it is.
00:07:55.340 I have the whole contract.
00:07:56.480 I bought a Mitsubishi Eclipse in 1997.
00:08:00.000 It's a great car, actually.
00:08:00.900 Do you know what my interest rate was on the car, Tom?
00:08:03.640 At least 20%.
00:08:04.440 What year?
00:08:05.920 1997.
00:08:06.900 Double digits.
00:08:07.840 Double digits.
00:08:08.700 I will say 14 to 16.
00:08:11.100 31%.
00:08:11.500 Unbelievable.
00:08:12.440 Wow.
00:08:12.760 I'm going to show it.
00:08:14.000 Unbelievable.
00:08:14.480 Tomorrow night.
00:08:15.980 31% for a Mitsubishi Eclipse.
00:08:17.600 That's a credit card.
00:08:18.320 Credit cards were capping at 2875.
00:08:20.540 Tom, when I show it to you today, if I have the backpack –
00:08:24.020 Mateo, do we have my – no, I didn't bring – did I bring my backpack with us here?
00:08:27.160 Did you see me carrying a backpack?
00:08:28.380 I don't know.
00:08:28.860 I think I just brought my iPad.
00:08:30.360 But if I had it, I would – it was a red Mitsubishi Eclipse.
00:08:33.740 It was a 1990 Mitsubishi Eclipse.
00:08:36.340 It was a used one.
00:08:36.980 I couldn't afford a brand new one.
00:08:38.120 So, I was – that's the one right there.
00:08:39.580 Look at that.
00:08:40.720 Sick.
00:08:41.040 A great car.
00:08:41.840 Turbo.
00:08:42.320 That's – wow.
00:08:43.180 Man, it's got so many stories in it.
00:08:44.940 It's not even funny.
00:08:46.220 Look how beautiful that car is.
00:08:47.940 Red Mitsubishi Eclipse.
00:08:49.280 31%.
00:08:50.000 So, let me ask you.
00:08:51.040 Is it F Max's fault?
00:08:52.560 No.
00:08:52.940 Or is it PBD's fault?
00:08:55.280 It's PBD's fault.
00:08:56.200 A part of it, you're going to go to –
00:08:58.660 I just want PBD to be given all the information when he purchases it.
00:09:01.800 I'm fully with you.
00:09:03.020 I am fully with you.
00:09:03.980 But then, you know what?
00:09:05.160 Be smart.
00:09:05.820 Be dumb.
00:09:06.700 Read it.
00:09:07.140 Don't read it.
00:09:07.780 It's on the consumer.
00:09:08.420 It's on you.
00:09:08.860 So, what I'm trying to say is the word that you talk about with the kids is what?
00:09:14.100 Restrain.
00:09:16.100 Restrain.
00:09:17.240 Restrain.
00:09:17.600 Adam, thoughts on this before we move on to the next one.
00:09:20.100 Most people are sleepwalking with their finances while daydreaming of their dream life.
00:09:26.940 I see it all the time.
00:09:28.740 Buy now, pay later is just a symptom of a larger problem, which is that people are just obsessed with stuff.
00:09:35.800 People are obsessed with things.
00:09:37.860 And then people end up becoming obsessed with debt.
00:09:41.400 It starts with student loans, 6%.
00:09:43.740 All right, that's 50 grand.
00:09:44.880 Okay, boom.
00:09:45.380 Then you get credit cards, that's 25%.
00:09:47.720 You want to go get a nice Mitsubishi Eclipse, you're paying 31% before you know it.
00:09:52.500 Then you get buy now, pay later.
00:09:54.120 That's another 30%.
00:09:55.960 Then you end up doing payday loans, 300%.
00:09:59.640 Cash advances, 300%.
00:10:01.880 Do you ever wonder why the average household in America, do you know what the average household debt in America is?
00:10:07.420 100 grand.
00:10:08.260 Every single person in America is minus $100,000 if you do the math.
00:10:13.420 Why is this?
00:10:14.140 Because we all go to school.
00:10:16.060 We take the same useless classes, algebra, biology, chemistry.
00:10:19.900 Gender studies.
00:10:20.100 No money classes.
00:10:21.940 Gender.
00:10:22.480 Vinny did his gender studies.
00:10:23.700 He's looking great.
00:10:24.620 No money classes.
00:10:25.800 So we sleepwalk throughout life.
00:10:28.280 And we wonder, why am I not rich?
00:10:29.900 Everyone's rich out there.
00:10:31.700 Why am I not rich?
00:10:32.820 The average person, this is what my whole thing is, the average person will be broke.
00:10:37.600 The broke person will stay poor.
00:10:40.020 Rich people will continue to get rich.
00:10:41.840 Why?
00:10:42.460 It's not because they try harder.
00:10:44.000 It's because they're better.
00:10:44.880 That's an element.
00:10:45.900 It's because they just understand money better.
00:10:49.240 So, Pat, you asked, is it on the bank, the car?
00:10:53.480 Is it on you?
00:10:53.960 It's on you.
00:10:54.880 It's why it's called personal finance.
00:10:57.740 Okay?
00:10:58.380 Why are some kids raised better than others?
00:11:00.400 Because it's on the parent to teach the kids.
00:11:02.360 It's on you to get better with your money.
00:11:05.160 Save that money.
00:11:06.000 I'm with it.
00:11:07.060 I'm with it.
00:11:07.980 I think no matter who you are, whatever you're doing, you know, use that money for books, conferences, events, ways to online courses that's going to teach you how to code.
00:11:19.500 By the way, whether it's you, there's plenty of places to go to learn how to code.
00:11:23.580 My son is taking an online course right now on coding.
00:11:27.380 Summer is here.
00:11:28.900 Future looks bright here.
00:11:30.300 We have the matching shirts with the hats, gang.
00:11:33.620 So, Rob, if you can go to it where people can see it.
00:11:36.280 No, you just had to go.
00:11:38.000 If you go back one where it shows the homepage right there.
00:11:41.720 So, to match in, if you can shop the collection, the hats, the shirts, the colors matching with each other.
00:11:46.940 This is the shirt that Vinny wears.
00:11:48.360 The black future looks bright shirt right there with the silver one.
00:11:51.120 Oh, I love that.
00:11:51.360 Every time I see it, because that's elevated, right?
00:11:54.740 It's raised up the shirt.
00:11:55.780 It's sick.
00:11:56.120 So, if you go up a little bit.
00:11:57.260 I don't know if that one's an elevator or not.
00:11:58.840 Go a little bit higher, Rob, with the hats.
00:12:00.860 The other way, Rob, if you go.
00:12:01.880 Oh, those are the ones that are elevated.
00:12:02.860 These are so sick.
00:12:03.780 Look at that.
00:12:04.880 Matching.
00:12:05.260 So, summertime.
00:12:06.060 Go sport your future.
00:12:07.420 Yesterday, we're walking around Vegas.
00:12:09.160 Guy's got Valuetainment shirt on, Valuetainment hats on.
00:12:11.340 It's awesome.
00:12:11.940 Now, we're seeing it all over the place.
00:12:13.700 And I'm getting a bunch of pictures being sent my way.
00:12:15.820 So, go to vtmerch.com, place your order.
00:12:17.880 Number two, we are officially, we were at Gaylord last week, Orlando, at the conference where the ball conference will be held.
00:12:26.700 And at the hotel where the ball conference will be held.
00:12:29.340 We are officially 35 days away from nearly 12,000 people coming together at the ball conference at the Gaylord.
00:12:37.360 The hotel looks amazing.
00:12:38.720 The number of networking opportunities, absolutely insane.
00:12:42.840 Whether you're an AI, real estate, private equity, you're trying to raise money.
00:12:46.920 You're trying to deploy money to some people.
00:12:49.300 Great place to come.
00:12:50.180 If you haven't yet bought your tickets, the top two-tier tickets are about to sell out.
00:12:54.800 Of course, you can get your general tickets.
00:12:56.820 But the best tickets are typically the executive and the CEO and founder for you to sit closely and network with others.
00:13:02.200 There's going to be a lot of big announcements that we'll be making.
00:13:04.020 Tony Robbins will be there.
00:13:05.380 Martha Stewart will be there.
00:13:06.780 David Falk will be there.
00:13:08.020 And a couple other surprises that we'll only be revealing while you're there.
00:13:11.420 If you haven't yet registered, go to thevaultconference.com.
00:13:14.580 Once again, to thevaultconference.com.
00:13:18.140 I believe the prices are increasing this Friday.
00:13:22.200 So get your tickets before the prices increase by the end of this week.
00:13:25.300 And get your hotels away as well at the Gaylord because everybody will be there.
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