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- A Brand-New Financial Trap To Beware Of
A Brand-New Financial Trap To Beware Of
Holly Trantham
July 07, 2025
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The danger, of course, lies in accidentally getting stuck in the debt-payoff cycle. You put one H&M outfit on a BNPL app, and because you’re still paying it off a few weeks later, you then put a concert ticket on the same app. Then, while you’re still paying off that, you put a scheduled grocery delivery on the app…and so on. It’s not dissimilar to getting the credit card payoff mambo we so easily fall into, when this month’s paycheck is spent on last month’s bill, and so on for the rest of time.
And now, utilizing these services is going to carry even more of the same dangers as living beyond your means on a credit card: FICO announced it is going to include BNPL repayment behavior on a new suite of credit scores.
Of course, a lot of the media spin around this makes it out to be a good thing. Since so many people who utilize BNPL services don’t have established credit histories, isn’t this a great way to establish one and build up your score? But if this is true, the opposite has to be as well: if you’ve never utilized credit before, and don’t know how (or can’t afford) to use it responsibly, BNPL usage could severely tank your credit — something that, until now, it didn’t touch. It’s a classic bait-and-switch that’s all too common with predatory financial services.
I'll be honest: I wrote all of the above before the house passed the “big beautiful bill” at the end of last week, which paints this BNPL news in an even more sinister light. This bill is poised to establish one of the biggest wealth transfers in the history of the nation, and lest there be any confusion, yes, that is from lower to upper socioeconomic classes. Millions of low-income Americans will lose their healthcare coverage thanks to the bill’s gutting of Medicaid, and cuts to SNAP benefits means they will also see potentially higher living costs and even less food access for their families (among many other devastating program cuts listed in the bill). These people are effectively facing income losses of thousands of dollars annually over the next decade, thanks to this bill’s cuts to benefits. And keep in mind, these are families and individuals likely already struggling, for whom an average estimated $1600 annual decrease in income could be detrimental. Meanwhile, tax cuts in top brackets mean wealthier Americans are set to see their income rise by $5,700 a year. Maybe this will be a nice boost for some, but it will arguably bring a hardly noticeable impact on the bottom line for most earners in those top brackets.
It's hardly a shocking development that our currently extremely right-wing federal government would pass such a cruel “budget,” but that doesn't make the ramifications any less appalling: people are going to die because of this bill, whether from outright losing medical coverage or from the years of disenfranchisement and sinking further and further into poverty they are bound to face because of it.
And while it may seem like the recent news about BNPL apps and credit reporting is a completely separate issue, it's…really not. The more our government dismantles our already sad excuse for a social safety net, the more privatization of financial services we are going to see, and the more predatory they will be allowed to act. The Consumer Financial Protection Bureau, one of the few government agencies actually working in the interest of the average working-class American, started sounding the alarm on BNPL apps at the beginning of this year, with a report illustrating how many of the users are already in dire financial straits. And less than six months later, it has been heavily defunded by the current administration, with a future that can only be described as opaque.
I'm sure there are plenty of people utilizing BNPL apps to finance frivolous purchases. But with this budget bill, and whatever else is still to come from this administration, the future of these apps — where working families are forced to use them to front the cost of groceries and household necessities after being put into debt by one unexpected urgent care visit after losing healthcare coverage, while unintentionally destroying their credit along the way — is not dissimilar from the cycle of predatory payday loans. And thus, personal finance continues to be a game where it feels like only the already-wealthy are invited to play.
I want you to be aware of the danger of BNPL apps, but that doesn't mean it's your fault if you have to use them. We will continue educating you guys on how to make the best financial choices in the system we all have to live in, but make no mistake: the solution does not lie in individuals learning how to play ball with a system that is stacked against them.
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So, quick update before I dive into this week’s recs:
Last time I shared my recommendations with you all, I mentioned being in the midst of Sarah J. Maas’ Crescent City series. Well, as of last week, I’ve finished the entire thing!! Honest thoughts: does not compare to the wonder that is Throne of Glass, but I can appreciate it for what it is. Would I recommend it to you all? Only if you’ve read or are reading Throne of Glass and/or ACOTAR. Otherwise darlings, you may refrain.
Okay, let’s get into it:
This week, I don’t have anything to sell you. These are ~vibey~ recommendations for you and your girlfriends so, get cozy, pour yourself some tea, and enjoy!
1) I’ve had the distinct pleasure of getting to meet some of you already (hey girliesss, hey!), meaning some of you already know I’m based in D.C. While I’ve come to develop a major fondness for the urban yet not so urban city, the politics plaguing our nation’s capital at this time have been particularly, umm… gross. Like, as a queer woman, how are we going to welcome Doechii and Cynthia Erivo for Pride weekend and just one week later, have a military parade?!? There were literally military tanks passing by my bedroom window. Please be so for real.
So, of course, when a friend called saying she needed a favor, “My lease isn’t up yet, but I found the perfect place. Come sublet my new apartment in NYC for the summer and be a placeholder for me?” I said, “Girl, my bags are already packed. You’re doing me and my mental health a favor. Peace be unto you!”
It’s been a time to say the least. Speaking of, if you have any recs for remote work cafes or fun activities in NYC, please DM me (@momentswac)! Maybe we can go together? I need friends in the city, pookies!!
The recommendation here? If you’re fortunate enough to have a remote work situation (or some vacation time!!), call up your girlies in other states (or countries!) and see if anyone has space for you to take a mini vacation! Even without all this Trump stuff, I noticed I was starting to fall into a poor routine: waking up, rolling over to my laptop to work, tv, and sleep. Now, with my new surroundings, I feel reinvigorated and inspired. What a gift!
2) For my second recommendation, it’s important that I share a mini preface: I don’t consider myself to be a shy person, like, at all. Ask anyone who knows me, that’s the last word they’d use to describe me. But I’ve been putting myself out there in a whole new way as of late and I’ve never blushed so much in my life!
My dear friend, Min, has challenged me with asking people out, live, in the wild, in the streets!! I’m usually actually pretty good at this. A smoky, sexy, dark club, music thumping so loud you can’t hear with anything but your heart… and other things. ;) Asking cuties out is easy peasy in that environment. But, Min knows that.
Sidebar: This is truly when I start contemplating, “Do I really need friends that know me well?” Because all this “being challenged” is starting to get real, lol.
Anywho, she set the parameters for me very simply…
It must be daytime
If it’s not daytime, it must be in a non “sexy” environment. So, no clubs or bars (wine bars are allowed).
And they must be someone I genuinely find attractive. No cheating by approaching a low stakes troll from the depths of hell.
So, in other words, Min said, “REJECTION THERAPY, ALEXA!”
Surprisingly, it’s been pretty…fun. It’s such a mental process. Once I get over that hurdle, I can do anything.
So far, I’ve gotten one date out of it (yes, yes, I shall update you all when it’s my recs turn again), and been rejected 4x. The rejections were really kind though! I didn’t feel stupid or humiliated at all because they were all genuinely flattered and let me down easy–I mean, can you blame them? Look at me! I’m adorable. Who’d want to see me cry? Exactly.
2 out of the 4 rejections were because they were married so, honestly, I’m not mad at it.
The recommendation here? Put yourself out there!! Min’s challenge has me feeling more powerful and more “in my skin” than I have in a good long while. For that, I’m grateful, and wish the same feeling for all of you!
Need some tips on what to even say? I’ve been following these two on Instagram to get the ideas flowing: @therealniamoore and @karolinageits. I’ve also been scouring TikTok for ideas that feel natural to me. Finally, many a group chat has been created with my friends to brainstorm together. Needless to say, it has been a timeee.
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