The Daily Valet. - 6/9/22, Thursday

✔️ When You Really Pay Later

June 09, 2022

Thursday, June 9th Edition

Cory Ohlendorf, Editor in Chief of Valet.

It’s all fun and games until you mess up your credit.

Cory Ohlendorf , Editor ⋯ @coryohlendorf

Today’s edition is presented by

Today’s Big Story

Buy Now, Pay Later’s Bust

Missed payments, rising interest rates put the popular services to the test

“Buy now, pay later” companies promised a credit revolution that would change the way people pay for things. Then a whole lot of people took them up on the offer. Now, rising delinquencies and a slowing economy are clouding that outlook.

According to the Wall Street Journal, the seemingly simple payment plans that allow shoppers to split up the cost of everything from clothing to home appliances were all the rage last year. And they’re still plenty popular. In fact, Apple just got into the game.

But what made scoring big ticket items so easy has suddenly become something of a mess for a lot of consumers. Last month, SFGate published an unsettling report about BNPL services, highlighting their popularity among Gen Z. According to the report, 73% of BNPL customers are part of this generation, spending 925% more now through the layaway-like services since Jan 2020.

Unfortunately, around 43% of them report missing at least one payment—and a lot of companies charge late fees or interest on leftover balances. Of course, the current state of the economy is likely contributing to some of these struggles.

Another survey from DebtHammer shows that 30% of users struggle to make their BNPL payments, and 32% report skipping out on paying rent, utilities, or child support to prioritize their BNPL bills. That could be because these services often lead to bigger purchases. According to data viewed by SFGate, the average Affirm customer spends $365 on a single purchase, as opposed to the $100 average cart size recorded in 2020.

And, unlike credit cards, BNPL can make it tough to get a handle on your credit outlook. According to CNBC, the Consumer Financial Protection Bureau has opened an inquiry into how BNPL lenders are using consumer data and reporting that information. “The problem is that when they’re using buy now, pay later for more and more expenses, including groceries and other in store purchases, they can rack up a lot of debt,” says CFPB Director Rohit Chopra. “The key piece is to make sure that we’re not creating a system that…sends people into a spiral of debt that they ultimately cannot repay.”

↦ Dig Deeper: How do the services differ? We compared the top BNPL services against a standard credit card.

House Passes Tough New Gun Measures

On a day of wrenching testimony from school shooting victims, lawmakers passed bills that are doomed in the Senate

The House on Wednesday endorsed some of the most aggressive gun-control measures taken up on Capitol Hill in years—including raising the minimum age for the purchase of most semiautomatic rifles to 21 and banning high-capacity ammunition magazines—as Washington seeks to mount a tough response to recent high-profile mass shootings.

One of the more haunting stories of the day came from an 11-year-old girl who survived the Texas school shooting, telling lawmakers by video how she covered herself with a dead classmate's blood to fool the shooter and avoid being shot. She “just stayed quiet” until she could call 911 from her dead teacher's phone.

The House voted nearly along party lines, but according to the Washington Post, it will amount to “little more than a political messaging exercise because of firm Republican opposition to substantial new gun restrictions.” That has left hopes for a bipartisan negotiation among a small group of Senators on more modest measures that might actually have a chance of drawing sufficient backing. Those talks continued Wednesday in hopes of sealing a deal in the coming days.

Republicans face some pressure to back tougher laws after the rash of gun violence. A recent CBS News poll found that Americans prefer stricter gun laws over less strict measures by a 5-to-1 ratio. In the poll, 77% of respondents said the minimum age to buy semi-automatic rifles like the AR-15 should be 21 (if not older).

↦ Meanwhile: Biden says voters have “sent a clear message” on crime and gun violence.

Partner

Want to treat your dad? Get a jumpstart on the holiday and pick him up something stylish.

Celtics Beat Warriors In Game 3

The team played to their strengths to take a 2-1 lead in the NBA Finals

Throughout the postseason, the Boston Celtics had played their best basketball away from home. Not anymore though. Boston punched back at their bullies in Game 3 of the NBA Finals.

According to The Ringer, the Celtics survived a furious Golden State comeback, hot shooting from the Warriors' top scorers, and a relative long-distance slump from its own shooters. But the Celtics were more energetic, more aggressive, and above all, more effective on offense—a marked difference from their more passive effort in Game 2.

As the league finishes celebrating its 75th anniversary, the Celtics are chasing their 18th championship. The Warriors are making their sixth finals appearance in eight seasons.

Two of the NBA's original franchises, the Celtics and the Warriors now mirror each other in another important way: Both rosters were largely constructed through drafting. And while Boston is making its first finals appearance since 2010, Celtics Coach Ime Udoka said he hoped to emulate Golden State’s long-term success. “It's a model for what we want to do here,” Udoka told the New York Times.

↦ Watch: Game 4 is on Friday night in Boston.

Optimism Does a Body Good

Science now suggests that optimism ‘may be just as important as exercise’

Here's some good news for people who like to focus on good news: scientists have found that optimism may be just as important as exercise when it comes to helping you live longer.

The study, published Wednesday in the Journal of the American Geriatrics Society, found that the link between optimism and longevity was evident across all racial and ethnic groups.

Researchers followed a group of 159,255 women and found that those who were optimists were more likely to live longer and past the age of 90 than those who were more pessimistic. According to their calculations, optimism is linked to a 5.4% increase in average lifespan. In other words, maintaining a positive outlook can add an extra 4.4 years to your life on average.

“Exercise has been widely recognized as an important factor for health and studies have shown that regular exercise adds 0.4-4.2 years of life,” one of the lead researchers said. “Thus our findings suggest the impact of optimism may be comparable to that of exercise.”

↦ Dig Deeper: What is optimism, really? VeryWell Mind says it's a mental attitude characterized by hope and confidence in success and a positive future.

In Other News

↦ The Jan. 6 Hearings Are Starting. Here’s How to Watch Them.

↦ What Is LGBTQIA+? The Acronym for the Queer Community Keeps Evolving.

↦ Going to No. 1 on iTunes Isn’t the Big Achievement It Sounds Like

Other Things We’re Talking About Today

Fashion’s good vibes

Space junk

Fitness myths

Partner

Not Sure What to Get Dad?

BOSS has something for every kind of father

Cotton-blend polo shirt, $118

Dads can be tricky to shop for. And a lot of them rarely spend money on themselves. So treat them to something nice. Maybe try to pick him up something that you know he'd wear—but since this is a gift, go for a more elevated version. For your children's father, maybe he'd like a sweatshirt emblazoned with his favorite team or you could refresh his underwear drawer.

For the dad who likes to spend his weekends at the country club, maybe it's a polo with a refined fit and finish. Or a knit cotton tee that dresses up anything that he pairs it with. Regardless of what you choose, BOSS is a brand that specializes in such luxe upgrades. And it's a legendary brand that most dads will certainly approve of. Herewith, a few of our favorite gift options.

BOSS x NBA sweatshirt, $158

Boxer briefs, $58 (for 5-pack)

Cotton-jersey knit tee, $178

Sock trainer sneakers, $199

Poplin slim-fit business shirt, $138

↦ Shop: Check out the whole line and pick up something for the dads in your life.

What We’re Buying

Frescobol Carioca Trancoso Wooden Beach Bat and Ball Set

The massive MR PORTER sale has a range of luxury items up to 50% off at the moment. This Trancoso wooden beach bat and ball set is a great example. It's an elegant and engaging game to play in the sunshine. The Frescobol Carioca brand is named after the game played on the beaches of Brazil, so it makes sense that they created their very own set. Each bat is made from five pieces of off-cut wood (so no two are identical) and they're then coated in resin for durability and water resistance. Volley the ball back and forth in one hand with a negroni in the other—life is all about balance.

↦ Get It: $260 / $156 by Frescobol Carioca